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This article was first posted January 1, 2018. Over 80% of the benefits in the GOP's Tax Reform legislation go to the top 1% of the income/wealth pyramid. A few things might benefit early retirees like the increase of the Standard Deduction to $12,000 for single filers, $24,000 married, but that's tempered by the $10,000 limit on property and state sales and income tax deductions. The GOP tax bill has two healthcare features. It doesn't fund the Cost Sharing Reductions (CSRs) as Sen. Susan Collins of Maine thought she'd bargained for. And the repeal of the individual mandate will make health insurance at least 10% more expensive than it otherwise would be, throw 13 million people off their health plan, and likely cause some insurers to refuse to cover folks in largely poor, rural areas of the South that are sicker than average and more costly to insure. People who live in Blue State urban areas, with State Insurance Commissioners that are playing the Trump health care dysfunction to a "T" should actually do OK. Lack of CSRs and rising premiums will make the Bronze plan an even better deal in the 20 states that have played the Trump innumeracy to the max. In many areas you can now get a Bronze Plan with a $0/month premium on an income of over $40,000/yr. That "free Obamacare" cutoff should rise to $50,000/yr as the Trump madness increases costs and the delta between the Silver benchmark plan on which tax subsidies are calculated and a Bronze Plan premium widens. Trump may think he's killed Obamacare, but he's actually made it cheaper for Blue State residents willing to shop for a health plan while completely screwing poorer folks in rural parts of the South.
Resources for additional information. Cost sharing reduction weeds: “Silver loading” and the “silver switcheroo” explained Commonwealthfund.org -- Essential Facts About Health Reform Alternatives: Eliminating Cost-Sharing Reductions Time Magazine -- Bitter Pill: Why Medical Bills Are Killing Us How Millionaires Get Obamacare Subsidies Intended to Aid the Poor, by Dan Mangan,CNBC,January 26,2016
Why I'm Not Worried About Obamacare Premium Increases, Retire Early Home Page, November 2014
CBO estimate of health insurance premiums under Obamacare, Nov. 30, 2009
Health Care Reform in Indian Country
Health Insurance Premium Credits in the Patient Protection and Affordable Care Act (ACA) Kaiser Family Foundation - Health Reform Subsidy Calculator Federal Register - Health Insurance Premium Tax Credit IRS - Affordable Care Act Tax Provisions Actuarial Value and Cost-Sharing Reductions Bulletin Plan Levels and Standardization of Coverage Commonwealth Fund -- Choosing the Best Plan under Obamacare |
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