Learn me Obama Care, or other health insurance

Please, let’s keep this from becoming political. I’m not bashing Obama, Bush, democrats, or republicans. I just have a queston.
I’ve never had to shop for insurance so this is all uncarted waters for me. I have a company trying to get me to come on board, but they do not offer insurance (contract position). They asked for a number for salary, the salary would not include the cost of insurance. So, I went online and found an Obamacare calculator. That calculator said insurance would be about $10K a year, with half of that qualifying for tax credits.
So, here’s the questions. How do you pay for obamacare? Payroll deduct, monthly check, bitcoins?
Since my insurance would be 10K a year, but half of that would be tax credits, would my actual outlay be $5K or 10K with 5K coming back at tax time?
I’m just trying to figure out if I should be adding 5K or 10K to my salary requirements.

The most important thing about Obamacare is that IT'S not insurance, it's giving you access to insurance. And I bet the way you pay for the insurance is between you and that company.

alfadriver wrote: The most important thing about Obamacare is that IT'S not insurance, it's giving you access to insurance. And I bet the way you pay for the insurance is between you and that company.

Well that just confirms that I'm totally a fish out of water here. I've got to keep digging.
The calculator was for The Affordable Care Act. THAT'S the actual insurance, "Obamacare" is the program that makes it possible then?

Obamacare is media speak for the ACA. The ACA just laid out a bunch of new rules regarding insurance, and established the online marketplace where you can shop for insurance.

Your insurance is still through a regular insurance company.

Yes, it's a subsidy that is apparently considered a tax credit. The government sends the payments to the insurance company. Another change is that private insurance now has an open enrollment period - currently closed - and outside of it, it's nearly impossible to get unless you've had something happens that allows you in. Losing a job that has insurance coverage would count.

Exactly how to get the subsidies varies from state to state. Some have their own exchanges; others use the federal exchange at healthcare.gov. Apparently getting coverage through healthcare.gov can take less than an hour if you're lucky. If you're unlucky like me, it can take over 50 days and several dozen phone calls to their tech line while several agencies try to convince each other that somebody else ought to provide subsidies.

DrBoost wrote: Please, let’s keep this from becoming political. I’m not bashing Obama, Bush, democrats, or republicans.

Take all the E36 M3 disturbing fun out of it why dont you

DrBoost wrote:

alfadriver wrote: The most important thing about Obamacare is that IT'S not insurance, it's giving you access to insurance. And I bet the way you pay for the insurance is between you and that company.

Well that just confirms that I'm totally a fish out of water here. I've got to keep digging. The calculator was for The Affordable Care Act. THAT'S the actual insurance, "Obamacare" is the program that makes it possible then?

You are using the ACA/Obamacare to determine your claim to help paying for the insurance. But the actual insurance is covered by a company, not the government. And that is who you will be paying.

I found the best way to deal with insurance through the ACA is to find a broker.

Now I get the fun job of canceling my personal health insurance and getting on the company provided one. This is sure to raise a few brows somewhere

When I was looking at it, the subsidy (tax credit) was a big variable, and the actual subsidy wouldn't be figured until you filed your '14 taxes. So for a year's worth of insurance I'd be applying the subsidy based on what I "guess" my income will be for the year. Even more variable if you have a fluctuating income and can't accurately, "guess" at what your income will be for the year. So if you make more than your guess, you could very well end up owing money come tax time. When reading more about it, it was suggested to only apply a partial subsidy, I was figuring 50% of what they offered, to lessen the chance of owing more come tax time.

The insurance policies they offered, were ridiculously expensive without the subsidy, and the "good" coverage, silver and gold, even when subsidized were still crazy expensive compared to what SWMBO and I had available through OSU.

Very, unsatisfied with the entire ordeal.

One thing to keep in mind is also to check which doctors in your area accept policies that you purchased under the ACA. In town, the majority of doctor's offices I spoke to accept my employer-provided insurance, but would not see a patient with a similar or the same plan purchased on a health exchange.

In reply to bigdaddylee82:

Out of curiosity, can you expand on "ridiculously expensive"?

I don't know the exact percentage of what I pay compared my company's contribution, but I understand it's roughly 1:2. Going by that, my high deductable plan (for a single guy) is roughly $6000/year, not including the HSA contribution I make (another $3200). The family plans are substantially more.

In reply to Ian F:

It's relative I know, and I was spoiled with OSU's heath coverage, SWMBO & I paid ~$90 a month for great coverage.

I've attempted several times in vain to log back in to Healthcare dot gov, but I don't remember my password, and apparently don't remember the answer to one of my security questions either.

Edit: these are for a single person, me, not family.

From memory, bare minimum ACA rate "Bronze" un-subsidised was pushing $5K/year with high co-pays and a large deductible. The better Silver plans closer to what I was used to, un-subsidised was close to $8K but with smaller co-pay, deductible, etc.

I think the point Ian was making was that your old plan did not cost $90/month.

I get that OSU covered a large chunk of the cost of my old provider. No clue what it's actual cost was, I just know what WE were paying for stellar service for two people. Compared to paying more than double that even with applying 50% of my allowed subsidy, for E36 M3 coverage, for a single person, through ACA providers with the very real chance of still owing even more money come tax time.

Ian F wrote: In reply to bigdaddylee82: Out of curiosity, can you expand on "ridiculously expensive"? I don't know the exact percentage of what I pay compared my company's contribution, but I understand it's roughly 1:2. Going by that, my high deductable plan (for a single guy) is roughly $6000/year, not including the HSA contribution I make (another $3200). The family plans are substantially more.

This is one of the core problems.

In a public, national conversation (such as this one online), there IS NO definition of "ridiculously expensive". Rates are set locally by local providers, and there is no national standard.

But the ACA (and related issues) IS a public national conversation.

So, we argue about the whole thing IN THEORY, but honestly have no idea how much the cost is to any of us, or how it compares to others.

Here's what ridiculously expensive is to me...

$17,566 for my family of 5 non-smokers in perfect health with a $12,000 deductible.

The median household income in my town is $25,191.

The subsidies MAY cover a huge percentage. The after-subsidy cost for my family is $4,512 (plus the $12K deductible). I would need a cash payout of $16,512 before I could ever collect a dime. That's more than 30% of my income (and our medical expenses have never exceeded $3,000 in the past 27 years).

However, as bigdaddylee82 previously noted, the subsidy is a huge question mark. My tax return is complicated enough that the question "What is your income" is pretty hard to answer. There is absolutely no way for me to guess. It is VERY possible I could be ineligible, and have to foot the entire bill.

So, I am currently uninsured. So are my kids. I will be paying the penalty.

As soon as I can afford it (when the penalty gets too high), I will be buying into a medical sharing plan, and never be able to have insurance.

I am actually looking at this topic as well. I would like to get out of the Dilbert zone I have a full-time job at now. I hate being dependent on my employer for more than cash flow.

I can pick up contract work fairly easily and have opportunities to get in on the founding of at least one start-up. I want to have at least some form of major medical in that is attached to me and not an employer.

SVreX wrote: but honestly have no idea how much the cost is to any of us, or how it compares to others.

Perhaps for some, but the company I work explicitly shows us what we pay and what portion they pay.

In my case, they pay about 66% of the cost of the insurance + throw $1400 a year in an HSA account. My wife and I's high deductible plan (no kids) with a $10k out-of-pocket maximum has a total cost of around $4000 for what I and the company contribute.

Although unfortunately some stuff has happened this past month for me and my health and that out-of-pocket max is starting to look like a scary number compared to what's in the HSA.

In reply to z31maniac:

You are describing a company-paid scenario.

That's not the same as an individual having to buy through the exchange.

The cost of that insurance would be a lot different if you had to pay for it instead of your employer.

The only thing you are telling me is that you have a nice benefits package. Nothing about the cost of the insurance.

He literally just said that his company gives the exact break down.

Including where he said that the cost was around $4000. That's the cost of the insurance.

SVreX wrote: In reply to z31maniac: You are describing a company-paid scenario. That's not the same as an individual having to buy through the exchange. The cost of that insurance would be a lot different if you had to pay for it instead of your employer. The only thing you are telling me is that you have a nice benefits package. Nothing about the cost of the insurance.

You said no one knows exactly what it costs, so I replied, that I do in fact know the exact cost because our company breaks it down for us.

Then told you the amount it costs and what portion the companies. So simple math can then be used to show what I pay.

Yes; I believe SVRex's point is the pricing on the private insurance market is way different.

In reply to z31maniac:

But you didn't!

You replied with the percentage you pay of your employer's cost.

You don't know what it costs, because you don't know their discount rate, what the differences are from one location to the next, how the coverages vary, etc. etc. etc.

The OP is asking a simple question, which many of us are asking around the country. How much does it cost? I think that is pretty reasonable.

Take a look at the numbers I posted. Those are costs. I GUARANTEE your costs are much lower, because I live in the 2nd most expensive place for insurance in the country.

But the ACTUAL COSTS vary with virtually no limits. My costs are high because I live in an region with only 1 insurance provider (Blue Cross/ Blue Shield), and only 1 health service provider (Phoebe Health Care). They cover half the state- a 400+ mile diameter.

No competition= no choice= they get to charge whatever they want, and I am caught by the short hairs being forced by the federal government to buy the over-priced product they are selling locally.

Your employer has choices. So do you. Not everyone does. Therefore, no real price for the product.

I don't even want to deal with this crap. The guy is asking for a salary number and I needed to include health insurance in that number. I'm going to tell him I need 1 million a year, a Miata, a Jeep CJ7, a pair of Magnepans, and 5 tootsie rolls. If he bites, I'll figure out the insurance part of it.

In reply to z31maniac:

How about I accept your input in totality. OK, let's look at those costs and (wrongfully) assume that it is an apples-apples comparison.

You said your cost is $4000. I said mine was $17,566.

So what is the cost?

It's a Federal requirement administered by the IRS. Tax rates have a national standard. We all can discuss our tax rate if we want to. Do you think there should be a measurable standard for insurance costs that we can compare things to?

You have a scenario you are happy with. I think that is great. What if your employer relocates, and asks you to come to South GA? Don't you think it is a reasonable expectation for you to be able to compare the costs? Would you expect your Federal tax rate to quadruple? Would you even think to ask?

Add 15k to your salary requirements. Cover yourself for all out of pocket expenses and assume that future increases may not rise as fast as the potential for insurance premiums. If you get a tax credit - good for you, but set it aside for negotiation purposes since it is actually an unknown until you file taxes next April.