General Discussion
In reply to the discussion: Can someone please help debunk this? I tried but I can't understand the regulation. [View all]Mojorabbit
(16,020 posts)Third, many of those who do decide to buy an insurance policy under the law wont pay full price. Of the 33 million previously uninsured who would gain coverage by 2022, according to the CBO, 17 million would join Medicaid or the Childrens Health Insurance Program. Twenty-two million would buy coverage through the state-based exchanges, and only 5 million of those would do so without receiving any government subsidy. (Also, the CBO projects a net 3 million dropping employer coverage and another 3 million dropping individual coverage, which is how it gets a total net of 33 million gaining insurance.) Those earning under 400 percent of the federal poverty level would be eligible for subsidies, and the average subsidy per exchange enrollee would be $7,270 in 2022, the CBO estimates. Thats an average, so the subsidy each individual receives could vary substantially.
Its true that a health insurance policy purchased by a family on the state-based exchanges, or now on the individual market, could cost about $4,700 for the year, or substantially more. And the CBO estimated in a May 2011 report that some families would pay that much and more even with the help of federal subsidies. Under the CBOs hypothetical example for the first year of the subsidies (2014), a family at 150 percent of the poverty level would pay $1,200 for an insurance policy and a family at 350 percent of the poverty level would pay $6,700, with subsidies that exceed that amount.
CBO, May 2011: In the first year of the illustration, premiums for the reference plan for a family of four are assumed to be $15,000, and the federal poverty level is assumed to be $20,000. In this hypothetical example, a family with income equal to 150 percent of the FPL (or $30,000) will be required by the law to pay up to 4.0 percent of its income ($1,200) to enroll in the reference plan and thus will be entitled to a subsidy of $13,800 ($15,000 minus $1,200). Families with higher income will be required to pay a larger percentage of their income to enroll in the reference plan. Specifically, a family with income equal to 250 percent of the FPL will pay 8.1 percent of its income to enroll in the reference plan (about $4,000) and will receive a subsidy of about $11,000, and a family with income equal to 350 percent of the FPL will pay 9.5 percent of its income (about $6,700) and will receive a subsidy of about $8,400.
http://www.factcheck.org/2012/07/twisting-health-care-taxes/