FOLLOW UP FOR OTHERS TO BENEFIT.Original Post>>
Couple: Age 64
Medical Insurance: ACA - Blue Cross Blue Shield of Arizona (only one available) "Silver Plan"
Monthly payment with ACA "subsidy" $484
Monthly payment if without ACA "subsidy" $3,053.28
Medical Bills for 2017: less than $20,000 (if no medical insurance).
Due to a quirk in our retirement transition (selling business, income went to zero for a short time) DW and I estimated our actual taxable gross income for 2017 to be "under" the $60,000 threshold for ACA medical insurance premiums. We were quoted $484/month for the "Silver" Plan. Deductibles were high. Coverage was poor.
When doing our taxes for 2017, we found out our gross income was $65,000 (aprox) about $5,000 over the ACA "subsidy" threshold. Now, according to our tax program. We "owe" the ACA $28,690
This means that I would have paid less than $20,000 if I did not have medical insurance.
And, $8,690 above that back to the ACA. (Obamacare).
1. This does not make sense to me. $3,053/month for ACA medical insurance coverage which covers very little seems unreasonable. Please explain.
2. There is a huge difference between the monthly premium "subsidized" and "non" at that $60,000 break point. Please explain.
3. If my gross income was only (claimed) $65,000. How can I owe the ACA that much? How do folks survive on this type of system? Did I figure this wrong?
4. I have one more year to Medicare. I have more than enough assets to self insure. Would it be wise to cancel this insane medical insurance policy for one year? Or just expect to pay about $36,000 for medical insurance for DW and I for the coming year?
**(edit - last question added for 2018)
5. So does this mean that I am better off paying the apron. $3,000 monthly premium for 2018 and be able to deduct it from my taxes VS continuing the "subsidy" setup and get "dinged" $30,000 retroactively by the ACA and unable to take that deduction?
Is this correct or am I more confused?
Appreciate everyone's help and clarification on this.
DW is upset
End Original Post >>
WHAT WE MAY OR MAY NOT END UP DOING.
Thank you everyone for your wonderful help.
DW and I researched our alternatives to paying $36,000 for one more year of ACA "Blue Cross Blue Shield" before Medicare eligibility.
Our options Are:
0. Continue the ACA policy for 1 more year.
1 United Health Care: at $1500/mo. Monthly policy with a catastrophic rider (6 pos renewable), fixed rate indemnity. Not Deductible. PPO. There are also 5 different levels. Our quoted price based on the highest "bundle", "Health Protector Guard" plan + Accident Safeguard Plan + Short Term Medical Plus Elite".
2 Blue Cross Blue Shield of Arizona (offered through IHC below) "short term policy only". Minimal coverage, limited term (less than 3 months > 88 days.
3 IHC Group. "Care Access Plan" Fixed rate indemnity, PPO, No Deductible. Mo to Mo coverage till age 65. Very similar to United Health Care except deductible on the catastrophic rider was $5000 vs $2500, $1350 vs $1500 in premiums for similar coverage, with the "MetalGap it was close".
http://echealthinsurance.com/wp-content ... ochure.pdf
4 IHC Group had 3 plans: "Superior", "Value", and "Economy". We can buy the "Superior".
Some broad strokes:
As far as I know, these types of alternatives were not available to us in 2017 except the 88 day Blue Cross policy. There was nothing outside of the ACA and within that, only 1 policy. United Health Care was not available in 2017 except through an employer.
Should I continue with ACA or go for the indemnity plan?
I did a research on IHC Group and the Consumer Complaints and Reports did not look good.