According to Merriam-Webster, the definition of the word conundrum is “an intricate and difficult problem.” And this word certainly applies to health care insurance in the USA today. On March 23, 2010 this conundrum intensified with the passage of the Affordable Care Act (ACA) that resulted in more involvement by the Federal Government and the long tentacles of the IRS. The eventual fate of the ACA (or Obamacare) is still undecided but for now it is the law.
The most egregious word in the ACA acronym is “affordable.” What is affordable to one family will be unaffordable to a family of lesser means. The ACA was designed not to change the actual health insurance premium itself, but rather to supplement people below a certain income threshold by paying a portion of the premium. Families with incomes at 400% or more above the poverty level (About $100,000 for a family of four in 2018) get no subsidies while those just over the poverty level get the highest subsidies.
People who have a Modified Adjusted Gross Income (MAGI) of about $60,000 will still pay 10% or about a $6000 portion of the total premium. Figuring MAGI is another conundrum by itself.
And if low-income people take on a second job to make ends meet, the increased MAGI will lower the subsidy and will result in the IRS taking steps to recoup the “overpayment” of the subsidy (Reference line 46 on your 2017 Form 1040, page 2 for “Excess advance premium tax credit repayment. Attach Form 8962”). This “repayment” can be devastating to families with children.
Adding to the problem is that there are few options for Obamacare. If your employer offers health care as a benefit, they will pay all or at least most of the premium, and your out of pocket expenses will be minimal. If not, then you may consider the risky option of having no insurance or shopping for expensive private insurance that will prove costlier than the ACA.
Veterans Keep America Going
Americans usually figure out a way to solve any conundrum, and our Veterans of Military Service best exemplify this. Honor Insurance was founded by a Veteran and takes a common-sense approach as part of Christian Health sharing insurance plans in Fort Worth and to provide health care coverage at a lower cost than the other options.
The “secret” of Honor Insurance is to offer three separate core policies along with smaller supplemental policies that in total provide a total health care package. Deductibles and premiums are reduced to save an average family thousands of dollars each year.
The three separate core policies cover:
- Catastrophic Hospitalization – This covers a hospital stay for a serious illness or injury and offers a “Cash Pay” program that allows you to better negotiate with your hospital.
- Minor Hospital and ER visits – These events are less serious and protect you from paying a large deductible for overnight hospital stays.
- Cancer, Heart and Stroke plan – This plan offers a lump sum payment used for long-term treatment or final expenses when you are diagnosed with cancer or suffer a heart attack or stroke.
If you are interested in Christian Health sharing insurance plans in Fort Worth and paying an affordable monthly premium and having control over the medical professional you see, then call Honor Insurance at 817-223-4095 or use the online form to get a quote explicitly suited to your situation.