Kaiser: Updated Health Care Subsidy Calculator

[flpoljunkie]

Online Tool Illustrates How Premium Subsidies Work In Reform Plans (Updated!)

(Note: Choose the 'Reconciliation Proposal' from the pulldown 'Choose a Proposal.' They have also rounded up the premium contributions, i.e. 9.8% becomes 10%.)

This interactive calculator illustrates the premiums and subsidies for those who purchase coverage on their own through an exchange or gateway because they don't get health insurance through their employers, Medicare or Medicaid, as provided under the new legislative package developed for consideration in the House of Representatives, as well as under the separate bills approved last year by the full House and Senate.

http://healthreform.kff.org/SubsidyCalculator.aspx

[Dappleganger]

1. K&R

This website has been very helpful to use lately.

[missmel224]

2. thanks

for posting this!

[flpoljunkie]

23. Note: You need to select on the results page if you live in low, medium or high cost area

It definitely makes a difference in your premiums.

[LiberalFighter]

3. Using an estimate on what my insurance would had cost my employer.

The HCR bill would save my employer more than $3,000 per employee.

[NavyMom]

18. The savings for my ER will allow us to hire at least 25 people within the next mth..nt

[LiberalFighter]

19. How many want to continue paying higher insurance premiums

instead of a "health care tax" that costs less and provides better coverage?

How many people are stupid about this?

[frazzled]

4. Make sure to set drop-down proposal menu to "Reconciliation"

Because that is what will be the law as of this afternoon.

I hypothetically put in data for a self-employed family of 4 with an income of $68K in a medium priced area: the plan premium would be $11,080 annually, but since the cap on the premium is 9.5% of income, the family's share of the premium would be $6,460 (58% of the total premium), with the government tax subsidy of $4,620. It still would be hard in the first year to pay $923 a month, but they would be getting $4,620 back at the end of the year, bringing the total monthly cost to $538 a month ... a little more, perhaps, than what most of us who get employer based insurance pay. But definitely cheaper than what this policy would cost right now without the plan.

Next I calculated for a 30 year old single adult earning $40K annually in the same medium-priced area. Their policy would cost $2,676 and they would get no subsidy, because this doesn't exceed 9.5% of their income. $223 per month for insurance.

I'm not sure how to do this for a 55-year-old couple with no children any longer, making, say $55K.

[flpoljunkie]

6. Sorry. You are correct about the 9.5% premium cap--down from 9.8%.

[66 dmhlt]

20. But Kaiser's only apply to the Exchanges - not available until 2014

However, the Washington Post has an interactive calculator based on

(1) If you do or do not have health insurance
(2) If you do, how is it gotten
(3) Number of people in the household
(4) Income
(5) Marital status

http://www.washingtonpost.com/wp-srv/special/politics/what-health-bill-means-for-you/?nav=most_emailed

[flpoljunkie]

22. Yes, I know. I posted it.

[flpoljunkie]

10. Subsidy will be administered thru insurance company, with any difference reconciled thru tax return

How health care overhaul affects taxpayers

Here's how the health care overhaul would affect
taxpayers, according to The Tax Institute at H&R
Block:

Taxpayers without qualifying health care coverage:

• Beginning in 2014, taxpayers who are required to
obtain or maintain qualifying health care coverage
will face a penalty if they do not comply. The penalty
increases from $95 in 2014 to $695 in 2016. They
must file a return substantiating required coverage
beginning in 2014.

• Certain individuals may qualify for a subsidy to
help cover the cost of insurance. This subsidy will
be administered through the insurance company,
with any difference being reconciled through the
individual tax return.

Based on the 2009 poverty level data currently in
effect, a family of four with household income less
than $88,200 would qualify for such a subsidy.

http://www.usatoday.com/money/smallbusiness/2010-03-23-health-care-taxpayers_N.htm

[frazzled]

13. Oh, thank you ... that makes it much more feasible for people

I didn't know that. I thought it might be hard for people, especially initially, to wait a year for a rebate, but this makes much more sense.

[SpartanDem]

24. I was wondering how this would work

sound like it pretty seemless

[flpoljunkie]

14. You are exempt from purchasing insurance if the cheapest plan costs more than 8% of your AGI

Require U.S. citizens and legal residents to have qualifying health coverage. Those without coverage pay a tax penalty of the greater of $695 per year up to a maximum of three times that amount ($2,085) per family or 2.5% of household income. The penalty will be phased-in according to the following schedule: $95 in 2014, $325 in 2015, and $695 in 2016 for the flat fee or 1.0% of taxable income in 2014, 2.0% of taxable income in 2015, and 2.5% of taxable income in 2016. Beginning after 2016, the penalty will be increased annually by the cost-of-living adjustment. Exemptions will be granted for financial hardship, religious objections, American Indians, those without coverage for less than three months, undocumented immigrants, incarcerated individuals, those for whom the lowest cost plan option exceeds 8% of an individual’s income, and those with incomes below the tax filing threshold (in 2009 the threshold for taxpayers under age 65 was $9,350 for singles and $18,700 for couples).

http://www.kff.org/healthreform/sidebyside.cfm

[frazzled]

17. I think it depends on your income as a percentage of FPL

The cap for a family of four earning $88K (400% of FPL) is 9.5%. The cap is lower for lower incomes.

[cornermouse]

5. So the insurance company is now the measuring stick?

How tidy. How convenient.

[flpoljunkie]

7. Kaiser has had handy side-by-side comparison chart of the bills, as well. Linked below.

http://www.kff.org/healthreform/sidebyside.cfm

[cornermouse]

8. Kaiser stands to benefit.

They aren't a disinterested party.

[flpoljunkie]

9. Of course, they do. But they have provided a handy chart to keep up with what's in the bills.

http://www.kff.org/healthreform/sidebyside.cfm

[kestrel91316]

12. Kaiser is a nonprofit. You would prefer that a for-profit insurance company

get our premium dollars?????

:rofl:

Kaiser was who I was gonna go to for a plan, their big hospital is 2 miles from my office.

[subterranean]

15. I think you're confusing this organization with Kaiser Permanente.

As it says on the website, the Kaiser Family Foundation is not associated with Kaiser Permanente or Kaiser Industries.

[kestrel91316]

11. After the subsidy, my insurance premium will be just under $100/mo!!!!!!!

Actually, probably less. I used approximate takehome income to calculate and not AGI from IRS form!!!!

The economy has wiped my income out. Nice to see that Obama has been thinking about people like me. FOR ONCE, I benefit from a government program for people with difficult finances.

ETA: more importantly, this bill will probably help a large number of my clients and potential clients. Which helps my business. Some day perhaps this will ensure that I do not NEED the subsidy anymore.

YAY

[Dappleganger]

21. Very good news!

It's good to see that this bill will help so many right out of the gate.

[Ysabel]

16. wondering what defines "financial hardship"...

zero dollars in savings for last decade perhaps?

- zero assets?

p.s. thanks for the calculator link...

[avaistheone1]

25. This Insurance is still too expensive & to think the insurance companies

will be taking 30% off the top makes me furious.

Calculate the rest of your cost of living, do the math. This is still very expensive insurance.

[flpoljunkie]

26. Hope more uninsured will be able to purchase thru their employers who will get tax credits this year

It is much less expensive for people to get insurance thru their employers. People who must buy insurance on their own are at a major disadvantage--altho the subsidies in the ACA will help many.

SMALL-BUSINESS OWNERS AND WORKERS

Employers with up to 100 workers would be eligible to buy insurance through the newly formed state-run exchanges, which would essentially be an online shopping mall of private insurance plans. But states could limit enrollment to employers with fewer than 50 workers up until 2016. In 2017, the states have the option to offer insurance on the exchange to those with 100 or more workers. Businesses with fewer than 50 workers, however, would not have to pay any penalties if they choose not to provide coverage, said Sara Collins, vice president for the Affordable Health Insurance Program at the Commonwealth Fund, an independent research group.

Employers with fewer than 25 workers would receive tax incentives to provide insurance, assuming their employees also had average wages below $50,000 and they paid for at least half of their employees’ premiums.

From 2010 to 2013, companies would receive tax credits of up to 35 percent of premiums paid, while employers with fewer than 10 workers who earn less than $25,000, on average, could claim the full credit. Starting in 2014, the credit would increase to up to 50 percent of premiums, and it would last for two years.

Meanwhile, deductibles could not exceed $2,000 for individuals or $4,000 for families, indexed for inflation.

http://bucks.blogs.nytimes.com/2010/03/22/more-on-what-the-health-care-overhaul-means-for-you/