Skip to comments.In California, middle class feels health insurance squeeze
Posted on 03/08/2014 10:42:05 AM PST by Mariner
Dawn and Nick LaPolla of Fair Oaks are solidly middle class, and they arent uninsured.
Yet their required switch to a new health insurance plan under federal changes puts them at a financial crossroads.
If they earn less than $94,200 a year, the family of fours preferred plan through the California health exchange would cost about $750 a month. But if they make even slightly more, theyll pay about $1,040. Thats because they would exceed the threshold to qualify for federal subsidies. Their current high-deductible plan, which expires in two months, costs $573 a month.
Unlike wealthier state residents who more easily can afford the new, often more comprehensive plans, or lower-income people aided by government subsidies, the LaPollas are part of a sizable segment of Californians slowly coming to grips with dedicating a greater percentage of their income to new policies.
Its completely unfair, said Dawn LaPolla, 40. Wouldnt you consider us still part of that struggling group? Were not buying yachts. Were not going on trips every year. Were not putting our kids in private schools. Were not buying Fendi bags. Were still unsure whether we will be able to pay our mortgage.
For the vast majority of residents, the Covered California subsidy isnt an issue. Low-income residents receive health insurance through Medi-Cal. Millions of others have insurance subsidized by their employer.
Through the exchange, subsidies are available for those making up to four times the federal poverty level. Eighty-six percent of those enrolling are getting some form of financial assistance. That means hundreds of thousands of Californians would be better off financially if they made a little less money because of the sharp income cutoff.
(Excerpt) Read more at sacbee.com ...
The article mentions the 240,000 people on the cusp of losing subsidy if a family goes over $92k or so.
That would mean there's probably 10X that number who are over that threshold and P!SSED their premiums went up substantially. Even "employer paid" and subsidized plans see enormous premium increases, often for lesser plans.
I believe this could shift 1/2 dozen Congressional Seats, even here in CA.
This whole federal subsidy thing gets me - what AND WHO is all this going to cost and for how long. I wish they’d call it what it is - legal theft from your fellow citizens.
So sick of this crap - now you have to think about being careful you don’t make too much money. Gee, what an incentive for a great country.
It's almost as if the government doesn't want people to succeed in life, to strive to better themselves, to work hard to get off the government dole. \s
There are easy ways to write formulas to prevent this "sawtooth" affect. Companies do it all the time when offering volume discounts to their customers. The last thing you want in business is a pricing plan where the customer reaches a volume of purchases of, say, $100,000 and the next dollar bumps them to the next price tier where they have to pay only $90,000. The goobers at FedGovInc have done essentially that with subsidies.
Stupidity, thy name if FedGov.
Tis is not a complaint against Obamacare, but a plea to raise the minimum wage and thus all wages. If wages are inflated the pain of Obamacare goes away.
It is the employers fault, not Obamacare. Employers are not paying a living wage. The raises will go to paying the healthcare tax.
It’s a GIGANTIC new welfare program. Soak the “rich” to subsidize the “poor.” This was not disclosed during the debates at all. And certainly NOT debated in the bill that Pelousy wouldn’t let anybody read. Passed in the dark of night, no R support, straight party-line vote, bribery and corruption — all to create a new entitlement program that runs up to almost $100k of income! Sickening, maddening, infuriating — you name it. Another nail in the coffin of this once-grand experiment in self-government.
Only autocratic government can destroy self-government, to be sure.
CA has a double whammy too: Jerry Brown at state level in addition to who’s at federal level.
Every single government welfare program is like that. You make $1 more than their limit and bam you pay more or lose the benefit entirely.
That’s one reason why people ‘work’ (hah!) so hard at either not working or staying under the limits.
Funny you should ask:)
Notice, the threshold is $94,200...and that's AGI (you know, after those exemptions that are so prevalent in the code).
This is a true gross income over $100k.
Below that, you're subsidized! Substantially.
Of course these same people are paying at least 90% of all taxes.
So the net result is that the "middle class" is taking on more collective debt and higher taxes so that they can pay MORE for Insurance on lesser plans...and get on the government teat to boot! And,, government gets to run everything. Use all information that exists and collect even more.
The Middle Class will catch on to this. And it'll really sink in when they're stuck 4 hrs in a waiting room with 3rd world illegals to see a Pakistani doctor.
The 2014 and 2016 post-election memes are likely to be "White Backlash" etc.
Simple. This couple needs to divorce so that they have incomes that meet subsidy levels.
I’m screwed. I’m single, 62 and make too much for subsidies and can’t get Medicare untill I get a tad older. I could retire right now, but prolly couldn’t get affordable insurance.
“White” backlash? That’ll be the day. Ain’t gonna happen. They’re all cowed and afraid of being labeled “racist.” Brown is the new White.
Do not comply with Obummer care
Perhaps California voters will come to realize that stupidity has its own built-in payback mechanism, but I ain’t holding my breath. Watch them reelect moonbeam.
White Backlash - it would be the backlash of the sane liberty loving citizens but I can see the media trying to make a racist meme out of it.
Too bad the first sorta black POTUS wasn’t a good one.
Eat it Cali’.
I have no, none, zero, zip, zilch, nada compassion for this. Vote stupid and suffer the results.
Only a liberal would call corporate contributions to an employee's health insurance a "subsidy". Obviously the employee earned the contribution as part of the payment for services rendered.
Of course they will.
But the truth will be that the "Middle Class" rebelled at being the personal ATM of government do-gooders.
You forgot to mention the government also gets to add millions of new union government workers, who will work and donate to elect more RATS to Congress!
“Low-income residents receive health insurance through Medi-Cal. Millions of others have insurance subsidized by their employer.”
Huh? Medi-Cal is California’s Medicaid plan, the vast majority on it have no employer and they pay zero for it!
I wonder how these people voted.
if you want to keep your doctor
“Brother, you asked for it.” Francisco d’Anconia
He is a productive genius who decides to show what would happen if someone were to devote such genius to the deliberate impoverishment of a company that is under threat of nationalization. The purpose is to show that a man of the mind can always defend himself against the worst attacks of a society that rewards failure and punishes success. The price is high: in this case, the destruction of a fortune that has lasted for centuries. But the prize is much more valuable: simple liberty.
“Only a liberal would call corporate contributions to an employee’s health insurance a “subsidy”. Obviously the employee earned the contribution as part of the payment for services rendered.”
Offering benefits including health care is how employers attract good workers. Obviously big government liberals have no clue how the real world works.
“..., the LaPollas are part of a sizable segment of Californians slowly coming to grips with dedicating a greater percentage of their income to new policies.”
Anyone paying the least bit of attention knew this was part of the plan. I’m not sure who I find more annoying, the liberals or these ignorant whining types.
“So sick of this crap - now you have to think about being careful you dont make too much money.”
I’m not advocating joining the ranks of millions of white people who have jumped on the welfare gravy train, but many would benefit from these programs (by being hurt less by them) if they would simply have families. It reduces your income tax burden, and is factored into your earning versus the poverty level (instead of looking at the level for a family of one or two, it could be a family of three, four, or ten). I’m shocked at how many taxpaying Americans are content (or at least submit to being forced) to subsidize the families of others while they themselves leave no genes behind to propagate the species, culture, and faith.
“We need to pass it, in order to find out what is in it.” Nancy Pelosi = Sen CA
“...Vote stupid and suffer the results....”
Friend, you just coined THE phrase describing the “Hope and Change” years 2009-2016.
If I remember correctly, most of California voted overwhelmingly for the Sock Puppet and his cabal of socialist, correct??
In the words of Jerry Seinfeld: “Gee... that’s a shame.”
The more wages increase so go prices!
So it's all working out as planned.
Yes, and the Obamacare tax will just get lost in the shuffle