Like many of you I was very interested in the promise made by the President to repeal the individual mandate set in place by the Obamacare and Affordable Care Act, which essential forced me to either pay for a crappy health insurance plan or pay a penalty to the government.
This frustrated me as I don’t like health insurance controlling my heath care or denying me care, despite the high fees I was forced to pay them.
That aside after waiting anxiously for the final votes and news reports and googling to be sure the individual mandate was really repealed back in December when so I had the option to not renew for January the crappy over priced health insurance from the Marketplace, I’m now finding out and seeing reports that despite the victory sung by the President and the new reports the repeal is not effective for 2018. WTF!!
I’m sure I’m not the only one who chose not to renew the Marketplace health insurance in January after hearing the new of the repeal. I’m also sure I’m not the only one that was relieved since the same crappy insurance increased its premium by 30%. This would have made my month premium $500 per month for a plan that had minimal coverage (bronze) and a $6500 deductible that had to be met before anything was paid out.
Do that math, $500 x 12 months = $6000 plus another $6500 deductible, so $12,500 before they cover anything. Why is this something I’m going to be fined by the government for saying no this makes no sense for me financially??
Even though I thought I was free of the 2.5% penalty, this penalty still makes more sense financially for me to just pay. Since I’m self employed and a freelancer/consultant, my business expenses effect my adjusted gross income fairly substantially.
Just an example, say I do make an adjusted gross income of $70,000 the penalty of 2.5% of that is $1,750.00. Add on top of this the $50 a month I pay for my primary care membership (doctor I can call 7 days a week who calls back and sees me for free), $50 per month for the accident insurance and $55 per month for cancer insurance. And in total I’m covered for $1860 per year to my providers and $1750 to the government, so $3610 total. This saves me an out of pocket immediately compared to the Marketplace health insurance by $2400 (rounded).
If I do need to pay for some sort of healthcare, well the Marketplace insurance wasn’t paying until after I was out of pocket another $6500 and only if that provider was “in-network”, which no one was with my plan from 2017. That means I’d have to be out of pocket $6500 plus the $2400, so a total of $8900 above my costs and the penalty in order for buying the health insurance to make any sense financially for me.
How does forcing this on Americans make us better off? How does this improve our healthcare system? I’m not following the logic. But maybe that’s because I do the math and I prefer to be the one making the decision on who and what HealthCARE I receive.
Tell me your experiences. I welcome a discussion here.
And yes, I’m single with no dependents. I know this is a different animal if you are dealing with children in the family and their health coverage.
If you want to calculate your penalty go here: https://taxpayeradvocate.irs.gov/estimator/isrp/estimator.htm