If Americans believe this savings they they also believe the Brooklyn bridge is for sale.
I went on and calculated it for us, using our winter home address in CA (since that is the site they use to test) and $500 per month per person. It is cheaper to pay the fine.
The author is going to have to pay $4500 MORE per year with Obamacare than he and his wife pay presently (ages 44/45 and in good health).
Some “savings”.
BEHOLD!! The miracle of Big Government! Everything is cheaper, shinier, and just works better when Big Gov is involved. Why, even the sky is bluer and the birds are chirping happier tunes when Big Gov blesses you with its munificence. It’s a wonderful day.
There are huge incremental health expense increases at work in Obamacare. As you make more money, up to 90% or more of your gross pay increase can go into paying higher premiums and out of pocket costs. Granted, few will use their maximum out of pocket each year. But, it shows the premiums plus the potential exposure to medical costs can consume nearly all of your pay increase.
Take the example in the video.
Annual Salary: $80,000
Annual Premiums: 8,304 (692 x 12)
Annual Out of Pocket Max: 12,700
Total Health + Max Out of Pocket: 21,004
Now drop their income to $30k:
Annual Salary: $30,000
Annual Premium: 2,208 (184 x 12)
Annual Out of Pocket Max: 4,500
Total Health + Max Out of Pocket: 6,708
Additional Health + Max Out of Pocket: 14,296
Incremental Salary Increase: 50,000 (80,000-30,000)
Incremental Percentage of Salary Potentially To Health Care: 28%
The percentages are much higher when you compare making say 30k versus 40k in this example.
Let’s say this couple was making 30k. And they get a raise to 40k. What happens to health care?
Annual Salary: $40,000
Annual Premium: 3,720 (310 x 12)
Annual Out of Pocket Max: 12,700
Total Health + Max Out of Pocket: 16,420
Additional Health + Max Out of Pocket: 9,712
Incremental Salary Increase: 10,000 (40,000-30,000)
Incremental Percentage of Salary Potentially To Health Care: 97%
And this is not even considering the additional effects of federal and state payroll taxes / withholding on the increased gross income. In some situations, you could be working for nothing.