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View Diary: Open thread for night owls: Raising Medicare eligibility age would hurt minorities most (163 comments)

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  •  There's a fallacy in your argument (5+ / 0-)

    There's nothing in the law that guarantees your right to premiums equal to 8% of your gross income.

    The law does say that, if the lowest cost private insurance available to you (plus tax credits) exceeds 8% of your gross income, then you're not subject to a fine if you decide not to have health care coverage.

    Let me repeat that, there is no guarantee that your premium minus tax credits will equal 8% or less of your gross income.  

    The only guarantee is that you won't be subjected to fines if you drop a plan and become uninsured if that plan is too costly for you.

    Obviously, there aren't many seniors who are willing to become uninsured, so they'll be forced to pay premiums at anyway even if they are higher.  

    But there is no mechanism in ACA to force insurance companies to keep their premiums at an affordable level.

    Link to ACA Fact Sheet

    Democratic Leaders must be very clear they stand with the working class of our country. Democrats must hold the line in demanding that deficit reduction is done fairly -- not on the backs of the elderly, the sick, children and the poor.

    by Betty Pinson on Mon Dec 10, 2012 at 09:55:50 PM PST

    [ Parent ]

    •  I think the clearest comparison to being uninsured (0+ / 0-)

      under ACA is to compare it to state's where drivers can be uninsured.  The drivers pay a fee to the state and then no longer have to carry insurance.  Matter of fact, my car carrier has policies which offer uninsured driver insurance to cover me if I am hit by an uninsured driver

    •  The law makes tax credits available based on the (0+ / 0-)

      second lowest silver coverage available.

      Those tax credits bring the cost of that plan to 8% of your income if you earn the national median.  In an echo of the voucher plans that Republicans were pushing, that same subsidy can be applied to more or less expensive plans, but you don't get money back if you apply it to an approved plan that costs less than the subsidy.

      LG: You know what? You got spunk. MR: Well, Yes... LG: I hate spunk!

      by dinotrac on Tue Dec 11, 2012 at 05:47:59 AM PST

      [ Parent ]

      •   If you earn the national medium (1+ / 0-)
        Recommended by:
        dinotrac

        that's an important caveat.  Many working class seniors will have incomes below the national median.  So its very possible many seniors won't have a choice but to purchase a plan that his costly - meaning more out of pocket costs.

        Add in the complexity and unpredictability of state plans and your have a mess on your hands.  

        I seriously doubt many people age 65 and older will opt for this over getting Medicare.

        Democratic Leaders must be very clear they stand with the working class of our country. Democrats must hold the line in demanding that deficit reduction is done fairly -- not on the backs of the elderly, the sick, children and the poor.

        by Betty Pinson on Tue Dec 11, 2012 at 07:12:02 AM PST

        [ Parent ]

        •  Oops, median (1+ / 0-)
          Recommended by:
          dinotrac

          Democratic Leaders must be very clear they stand with the working class of our country. Democrats must hold the line in demanding that deficit reduction is done fairly -- not on the backs of the elderly, the sick, children and the poor.

          by Betty Pinson on Tue Dec 11, 2012 at 07:15:32 AM PST

          [ Parent ]

        •  If you earn less than the national median, you (0+ / 0-)

          are likely to pay even less. For example, if you make about 80% of the national median, you will pay only 6% (or maybe it's 6.5%, I can't remember) of your income.

          Not only is your payment based on a percentage of your income --  8% of 50,000 = $4,000 but 8% of $40,000 is only $3,200, but the percentages change as you go down.

          So... that $40,000, depending on where you live, is right around the family threshold for the lower rate, so, if the percentage is 6.5%, you would pay $2600 for your insurance.

          Again -- there is a big asterisk: the subsidies come in the form of tax credits.  If you can't adjust your W-4 sufficiently, you won't get the subsidy until you file your tax return.

          LG: You know what? You got spunk. MR: Well, Yes... LG: I hate spunk!

          by dinotrac on Tue Dec 11, 2012 at 07:18:35 AM PST

          [ Parent ]

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