The proposed Reforms mandate group insurers to pay 65% of your premiums. You pay the balance PLUS either $10K or $15K (Baucus Bill?) out-of-pocket each year.
The average family premium is $12,250/year. Your 35% payment is $4,375/yr.
The proposed Reforms would also require you to pay up to either $10,000 or $15,000 out-of-pocket, too. And that is better than the existing insurer rip-off. However,
What if a member of your family has, or contracts, a lifetime medical condition that costs at least either $10,000 or $15,000 or more EVERY year?
How many years will it take to bankrupt you?
Mind you, the above scenario is for those lucky enough to have good policies through their employers. How about those families not so lucky?
For those without employer coverage the annual exposure is $22,500 or $27,000 out of pocket every year potential. Will that bankrupt you?
btw, if you don’t hit that Rec button in the right hand corner, others won’t get to read this diary tonight. Whatever. I just want people to be aware.
Will the bankruptcy law be changed to eliminate the possibility of medical bankruptcy, like it did for credit card debt?
And can you afford to pay 39% of your after-tax income for medical expenses each year? Heaven forbid your family has, or contracts, a lifetime condition.
In the House Bills, anyone with an income under 400% qualifies for a subsidy. It is rumored that the Senate Finance Bill limits that to 300%.
Here’s the chart depicting The Federal Poverty Level. The Bills determine the portion the FED will pay to the insurers on our behalf based on either 300% (Baucus Bill) or 400% (the other Bills) of these FDL levels. As the majority of Americans fall within the 400% of Federal Poverty Level, I thought you might like to know this info:
The 2009 Poverty Guidelines for the
48 Contiguous States and the District of Columbia
Persons in family Poverty guideline
For families with more than 8 persons, add $3,740 for each additional person.
And here is what YOU WILL HAVE TO PAY for your mandated premiums if you or your family earns less than 300% or 400% of the Federal Poverty Level, or 3x or 4x the FPL figure in the chart just above here:
level (FPL) Premium payment limit (as a percent of income)
133% or less 1.5%
For example, a family of three at 133% of the federal poverty line ($24,352 in 2009 annual income) would be required to only pay annual premiums of $365 toward a Basic plan in the Exchange. A family of three at 400% of poverty ($73,240), where the premium subsidies end, would be required to pay no more than $8,056 in annual premiums for a Basic Exchange plan.
Let’s put that into perspective for a family of 4 with two wage earners each earning $15.00 an hour.
$15 x 40 = $600/wk x 2 wage earners = $1,200/week
$1,200/week x 52 weeks = $62,400 a year
Under Baucus Plan this family earns less a little than 300% FDL
3 x $22,050 FDL = $66,150
Their premium will be approximate 10% of income or $6,615 a year, PLUS $10,000 out of pocket. For a total worse case health care expense for a year of $16,615.
Keep in mind that we have to deduct taxes from that $62, 400 gross income. All taxes, SSI, Medicare deductions could equal 30% or $19,845 total tax liability (not including real estate and sales taxes)
$62,400 – $19,845 = $42,500 after tax income
What % of net income is their potential health care liability?
$16,615 divided by $42,500 =
39% of Net Income Potential Health Care Costs/Annum
Keep in mind, if you earn in excess of either 300% or 400% of FDL, you will pay what the insurers quote you and/or your employer. You policy won’t have to comply with QHBP until 2018. If you have an individual policy you are stuck with what you have as well, it is grandfathered.
Can someone explain how anything called Reform can have 8 Grandfathered references in the Bill and why your group plans have until 2018 to comply with the rules for the Exchange policies?
Existing group plans would have to transition to QHBP standards by 2018.
Existing nongroup (individual?) insurance policies would be grandfathered as long as there are no changes to the terms or conditions of the coverage (except as required by law), including benefits and cost-sharing. Such policies would be required to meet other conditions, including increasing premiums only
according to statute.
The average policy for a family of four is $12,000+/annum plus you will pay and additional $10,000 ($15,000 under Baucus Bill it is rumored) out of pocket, so your annual worst case scenario in a year would be $22,000, some of which may be paid by your employer (65% of your premiums if your employer falls within the mandated employers guidelines).
Disclaimer: I am not an accountant/tax expert/professional. If you see errors, please help me to correct them. Thank you.
All that money going to the insurers instead of being either disposable capital or money going directly to the people makes me sick.
Yes, I am upset. Anytime people suffer I am upset. $14K or $19K out of pocket per year will cause suffering for many. This is needless suffering. Financial insecurity destroys families. A society without strong families will descend into chaos. Is that what the Corporaticians want? Chaos?
But what do you expect from American Corporaticians who have historically refused to do the right thing. Specifically, it took them nearly 30 years to release American children from the bonds of sweat labor.
Heaven knows, those industrialists needed kids to sweat and die to make their products and the Corporaticians then, as is true now, needed their money and support.