We are a family of 3, age 54, with a son in college. We have been retired for a few years. We pay $16.92/mo for our health insurance. It is an excellent PPO plan with nationwide coverage through the BCBS network. What is available to you, and what you will pay, will vary greatly depending on where you live.MrCheapo wrote: ↑Tue Sep 14, 2021 12:34 pmThanks, I wrote you a PM regarding the future of ACA as we are not allowed to discuss it publicly.printer86 wrote: ↑Tue Sep 14, 2021 12:10 pmTo the OP,MrCheapo wrote: ↑Tue Sep 14, 2021 11:47 amFair enough but I'd counter a friend in need is a friend indeed.
He's not handled COVID well and is just making rash decisions so I wanted to calm him down before he jumps off.
I added some key points to my original post that I bolded. Namely 1) he doesn't have any estimate of the cost of health insurance for 13 years and 2) His pension is $3500 but only comes with 25% survivor benefits.
I think 1) is a real issue as God knows what will happen with the ACA and the premiums seem to change yearly often by a lot. I estimate those 13 years of health insurance will cost him close to $200K.
I'm retired and we are in our late 50's. I'm able to manage our income in order to garner a decent ACA discount. the monthly premium for the 2 of us is $1.64.
There are ways to make things work. Your friend may even have a potential inheritance in his future. A share of Mom and Dad's house could easily add a couple hundred grand to the nest egg.
But is it really only $1.64 for a quality health plan. Further, this must be subsidized, when does this subsidy end? Finally is there an income threshold when the ACA plans become expensive?
As far as the tax credits are concerned, they are here until they are not. Just like any other tax rules, they can be changed at any time. There has been some talk of getting rid of favorable capital gains tax rates. Recent budget proposal eliminates backdoor Roth, and perhaps even Roth Conversions.
This is not to start a discussion on proposed legislation, but just to highlight that any tax law that you are depending on can change, especially since such things fall under budget reconciliation rules and do not require filibuster proof majorities,bit makes it easier for both parties to make such tax changes.
As for income limits for the tax credits. Yes,there are limits, they have been suspended for 2021 and 2022, but outside of that, the amount of the tax credit is reduced as income increases, and after 2022, the credit goes to $0, when you hit 400% of the federal poverty level for your state and family size.