Monday, September 30, 2013

Typical #ObamaCare Scenario

When Obamacare fully enacts, you can expect to see scenarios such as this playing out all across the United States.

A 27 year old worked 40 hours a week and made $30,000 in 2012 and is currently making the same. He is just barely paying for food, clothes & housing expenses and insurance was not offered by his company, so he hasn't been paying for insurance & he was able to pay his bills.

The company has 55 full time employees, & due to ObamaCare, the company must now offer insurance or pay a penalty.  His company has chosen to cut the hours of several full time employees.  His hours are now cut from 40 to 29 and he still has no benefits. He will now make $21,750, that's $8,250 less a year (ObamaCare won't take this into consideration until next year).

Household income in 2014: 261% of poverty level Unsubsidized annual health insurance premium in 2014: $2,535 Maximum % of income you have to pay for the non-tobacco premium, if eligible for a subsidy: 8.37% Amount you pay for the premium: $2,512 per year (which equals 8.37% of your household income and covers 99% of the overall premium) You could receive a government tax credit subsidy of up to: $24, (Wow! $24 whole dollars) (which covers 1% of the overall premium) That's $2,512 he MUST pay or pay a tax for noncompliance. (For 2014, the penalty is either $95 per adult or 1% of family income, whichever results in a larger fine. In this case, it would be $300. That's $300 for getting nothing, still a better deal).

So, he is making $8,250 less and is now required to pay $2,512 (or the $300 penalty) for health insurance.
He could enroll in a Bronze plan for about $2,078 per year (which is 6.93% of his household income, after taking into account $24 in subsidies). For most people, the Bronze plan represents the minimum level of coverage required under health reform. Although he would pay less in premiums by enrolling in a Bronze plan, he will face higher out-of-pocket costs than if he enrolled in a Silver plan.       
What should he cut? Food, housing? How will he find a second part time job now that millions of other people are in the same boat of now being part time whereas the formerly were full time? The number of full time jobs available will also be reduced because more people than ever will be seeking them. In other words, more people than ever will be looking for jobs. How can young people just starting out compete with experienced people who have been forced into the job market?