How much does it cost me to take care of Obama?
The cost of Obamacare depends on five factors: age, income, family size, location, and the type of plan you choose. This is because the Affordable Care Act provides subsidies for middle-income individuals, families and small businesses. It also expands free medical assistance for low-income families. It taxes high-income families, businesses that do not provide medical benefits, and those who do not register insurance, unless they are tax-free.
First, your cost depends on the type of plan you choose. All health insurance plans are divided into four categories. They all offer the same 10 basic health benefits. These four categories are:
Bronze - the lowest premium, but only pays 60% of the health care costs. If you don't want to have a lot of medical expenses, choose this plan.
Silver - pays 70% of your medical expenses, but the premium is higher than the Bronze Plan.
Gold - pays 80% of the cost, which is higher than the silver plan.
Platinum - pays 90% of the fee, but the monthly premium is the highest. If you have a chronic illness, it makes sense to choose this plan.
Each category's plan allows you to compare monthly premiums, deductions, copies, and pocket maximums per year. This is a tricky issue. Even in the same category, the plan with the lowest premium may have the highest deduction. If you are sick, you may pay more for medical expenses than a plan with higher insurance premiums but lower deductions. So you have to estimate what the actual medical costs will be, and then determine the insurance plan to help you minimize the total cost.
Second, your cost depends on your age. Medicare companies can charge older people a higher premium. But they can't charge more than three times the premium for young people.
The third component is where you live. This is because in some cities, the cost of living, including health care, is higher than in other cities.
The fourth and fifth are your income and family size. If your federal poverty rate reaches 400% or lower, you will receive a subsidy. This is how subsidies work. Suppose you are a bachelor and your income is $47,520 (about 400% of the poverty level). Obama Healthcare promises that you won't pay more than 9.5% of your income for a year, or $4514, for the second lowest silver program. Your subsidy is the cost of the plan minus $4514. So if the plan is $5,000, your subsidy is $485.
What if you want a more expensive plan? Obama's health care reform is based on all subsidies for the second minimum silver plan. So your subsidy is still $485 a year and you can apply for any plan. You pay the difference.