Politics and Money

[lesgetrich]

Here's a real life example for all of you Obamacare skeptics. I own a small insurance agency and work under contract to a large carrier that supplies my agents benefits plan. I'm 62 years old and single, although I live in a committed relationship with a wonderful woman. After paying my employee and business expenses I have barely enough left over to pay for my benefits. The rest of my taxable income of $38,000 last year came from investments.

I just got my agency benefits statement for next year. My medical premium on my $5,000 deductible policy will be raised to $975/month from $615/month. Since we're contractor's, not employees, the carrier has indicated that we're free to get coverage on the exchange since they are not contributing to our premium. Without subsidies, the same policy that costs $975/month through the carrier will cost $576/month via the Affordable Care Act (aka. Obamacare). Better yet, since I qualify for a subsidy, my premium will only be about $116/month. That's a saving of $10,308/year.

Without the ACA I'd be forced to discharge my employee and perhaps shut my business. And don't think that the increase in my agent benefit premium was all due to ACA. It's the kind of premium most people my age would pay in the individual market, although there would be a small effect from the additional coverage the ACA requires (e.g. a lower out of pocket maximum).