OK this is my rant for the day! I have a friend who has a household of 3, 2 parents, 1 child. The parents are self- employed and their profit is about 50,000 a year. They dont have health insurance but their child does through the awesome Florida healthy kids program. They just went on the government marketplace health insurance site to find out whether they should take the penalty or get insurance. The monthly payment for her household is almost $800 a month which is equal to a house payment. The deductable is $12,600. Since they are healthy unless there is some kind of catastrophe they wont be using their health insurance. Now, this is the kicker. They are eligable for a tax credit of $640 a month which brings their health insurance payment down to $130 per month which they can afford. They can not afford to pay the $800 per month. But if they make more money- the credit changes and their monthly rate changes. Talk about a decision to make- dont make more money so you can have this low monthly fee or make more money so that your fee goes up which just takes most of your money you just made away. It makes no financial sense. Who makes this stuff up????? So if they make $10,000 more their credit will go down all the way to $65 per month. Their payment would then go up to nearly $700 per month. Lets do the math. That would leave them with $1600 which a portion of that would go to self employment tax and federal taxes. So what good is it to make more money? WOW!!!! This looks like a ponzy scheme to me. Not only that but they would have to give up their childs Florida care policy which now includes dental and vision and the market place policy does not include those.
Posted on: Sat, 22 Mar 2014 19:42:38 +0000
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