[The enhanced subsidies are way too generous.]
PARTIAL ENHANCED SUBSIDY CONTINUATION [to 2036]
Except as required by the Fair Share PPACA premium minimums below, the monthly premium to be paid on a plan shall not exceed the Schumer formula amount in terms of dollars by more than 1.5 times the household’s income in percentage terms of FPL that exceeds 90% FPL.
[If the household’s income is 400% of FPL, the percentage difference is 310% and increase would typically be capped at $465/month.]
[If the household’s income is 300% of FPL, the percentage difference is 210% and increase would typically be capped at $315/month.]
FAIR SHARE PPACA PREMIUM MINIMUMS
There shall be premium minimums of the higher of:
1. 1/65th of the Medicare Part B premium amount per insured year of age as of the start of coverage
2. one-tenth the percentage of the policy premium of the household income as a percentage of FPL.
[For a 5-year-old, 7-year-old, 32-year-old and 34-year-old, the ages would sum to 88 and the monthly absolute minimum premium amount would be a (88/65)*$185 or $250.46.]
[For a 5-year-old kid and a 27-year-old mom the ages would sum to 32 and the monthly absolute minimum premium amount would be (32/65)*$185 or $91.07.]
[For the second minimum, a family whose income is 300% of FPL would have to pay at least 30% (one-tenth of 300%) of the cost of the policy.]
[About half the premium is to subsidize unhealthy people. Paying 30% is covering well over 60% of true risks of most insureds.]
Insurers may partially waive the minimums for up to 20% of their issued PPACA policies down to no less than $10/month after the first month’s premium is paid provided $20 is paid upfront for a financial review fee. Insurers need not waive for the entire remaining term.
First sentence: Limit the shock.
Second sentence: Make sure most insureds pay close to a reasonable share.
Third sentence: Allow exceptions for those with unusually high living expenses.