We will be entering a time of uncertainty for people who receive a subsidy on their insurance, based on their income.
Because of the COVID-19 pandemic, our government took action to make health insurance more affordable for millions of Americans. New subsidies were created for those in the higher income bracket to get ObamaCare plans. In summary, the government picked up the cost of health insurance if it was more than 8.5% of your taxable income.
But these were temporary solutions to a problem, not permanent ones.
The net result was that about two million people near the poverty level had a chance to get health insurance for free, and another three million people who had higher incomes, got subsidies to help pay for their health insurance.
The news that will come as a shock to most Americans is this: huge premium increases will soon be coming, as subsidies will be likely be ending on December 31, 2022.
If congress chooses to do nothing, then these subsidies will end, and the cost of your health insurance could skyrocket! This will apply to those in the higher income brackets, depending on family size, and will likely be ending in December of 2022).
New Cost Example: A 45-year-old, married, with two children, making $110,000 a year, will pay an extra $7,700 yearly, after the subsidy is removed. Why? Because the older you are, and the more income you have, the worse the impact will be of the loss of a subsidy.
So, what can you do now to prepare? Plan now to see what your health insurance options will be for 2023.
There are other options other than AHA (Obamacare) plans that are affordable! Plans like fixed indemnity and short-term medical will not be impacted by the loss of subsidies. For many people, these are great solutions! These plans could be lower in cost, and they have year-round availability.
These plans will cost roughly half of what an Obamacare plan would cost for someone whose income is more than four times the federal poverty level – about $55,000 a year of taxable income.
At a time of high prices, high inflation, and high taxes, take the time to prepare for the health insurance subsidy loss. Call Amy Kelley, The Insurance Nana to help you. Amy can help you find the right health insurance policy to fit your budget. 770-527-5598