Author Topic: Any ways to cut healthcare?  (Read 4430 times)

dtp1987

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Any ways to cut healthcare?
« on: April 10, 2014, 07:16:25 PM »
With Obama Care in full effect at the end of this year, the lowest plan my wife and I can get on is $200 more a month then what we pay now.. Are there any other options other then paying the 1% tax fee?

This seems very antimustachian...

Thegoblinchief

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Re: Any ways to cut healthcare?
« Reply #1 on: April 10, 2014, 07:20:25 PM »
I haven't spent any time researching ACA options, but how is your monthly cashflow? Can you increase 401k contributions to reduce your taxable income and thus increase your subsidy?

randymarsh

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Re: Any ways to cut healthcare?
« Reply #2 on: April 10, 2014, 07:38:39 PM »
Some other members were discussing temporary policies that last 364 days. These are cheaper because they don't have to comply (yet I think) with the new insurance requirements.

Have you done a detail comparison besides the premium? Deductible, out of pocket, etc.

If you haven't already started an application on the ACA site, the open enrollment period is over until you experience a qualifying life event. You can search on sites like ehealthinsurance.com but the only ones that came up for me were a few temporary ones.

dtp1987

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Re: Any ways to cut healthcare?
« Reply #3 on: April 10, 2014, 07:55:53 PM »
I haven't spent any time researching ACA options, but how is your monthly cashflow? Can you increase 401k contributions to reduce your taxable income and thus increase your subsidy?

Our income would have to decrease greatly. I believe every household that makes over 30,000 is charged higher. If under 30,000 you get the low rates. Our taxable income would have to go way down, and I don't think we could possibly invest enough to bring it down that much...

dtp1987

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Re: Any ways to cut healthcare?
« Reply #4 on: April 10, 2014, 07:56:53 PM »
I haven't spent any time researching ACA options, but how is your monthly cashflow? Can you increase 401k contributions to reduce your taxable income and thus increase your subsidy?

Our income would have to decrease greatly. I believe every household that makes over 30,000 is charged higher. If under 30,000 you get the low rates. Our taxable income would have to go way down, and I don't think we could possibly invest enough to bring it down that much...

That is what I currently have is a temporary plan. But at the end of this year, I believe it is November, we are forced to get on one of the permanent plans.

brewer12345

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Re: Any ways to cut healthcare?
« Reply #5 on: April 10, 2014, 11:06:56 PM »
I haven't spent any time researching ACA options, but how is your monthly cashflow? Can you increase 401k contributions to reduce your taxable income and thus increase your subsidy?

Our income would have to decrease greatly. I believe every household that makes over 30,000 is charged higher. If under 30,000 you get the low rates. Our taxable income would have to go way down, and I don't think we could possibly invest enough to bring it down that much...

It depends upon household size.  A family of 4 gets subsidies until their income crests 94.2k.  Do some research.

Daleth

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Re: Any ways to cut healthcare?
« Reply #6 on: April 11, 2014, 07:46:44 AM »
I haven't spent any time researching ACA options, but how is your monthly cashflow? Can you increase 401k contributions to reduce your taxable income and thus increase your subsidy?

Our income would have to decrease greatly. I believe every household that makes over 30,000 is charged higher. If under 30,000 you get the low rates. Our taxable income would have to go way down, and I don't think we could possibly invest enough to bring it down that much...

That is not correct. You are eligible for subsidies until your income (MAGI) exceeds 400% of the federal poverty guidelines, which for two people this year is $62,920.
http://familiesusa.org/product/federal-poverty-guidelines

So the $30,000 number is totally irrelevant. The subsidies are higher if your income is lower, but there is no magic number where suddenly insurance is cheap or suddenly it's expensive--the subsidies decrease *gradually* and *regularly* as your income increases.

But for this year you have waited too long. To make sure that people don't go without insurance and then suddenly try to buy it when they get sick, they had to impose a deadline and that deadline was March 31. (If you started applying before 3/31 but didn't finish--in other word if you created an account at your state's Obamacare exchange website but didn't finish the process--then you can have an extension until April 15; just log in to your account and finish the process.)

Still, hopefully this advice will help you when the next open enrollment period starts in December.

« Last Edit: April 11, 2014, 07:49:34 AM by Daleth »

Dee18

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Re: Any ways to cut healthcare?
« Reply #7 on: April 11, 2014, 08:32:31 AM »
I recently spoke with a friend of mine who is a retired doctor about this.  He said, "you know what you need to do to cut your healthcare costs, you"re just not doing it.  Exercise every single day and quit eating all those carbs...."  It wasn't the advice I was expecting, but I know he's right. 

ASquared

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Re: Any ways to cut healthcare?
« Reply #8 on: April 11, 2014, 09:23:19 AM »
First off - research Obamacare BESIDES what other people tell you.  The subsidies are actually quite generous.  Work your taxes so that you get at least part of the subsidy (and help you investments along the way). 

Get an HSA if you don't already have one.  This has been a major tax reducer for us.  Then you can pay for medical expenses with pretax money.

Take better care of yourself.  Eat better - actual FOOD rather than processed junk. Exercise. Meditate.  Brush and floss religiously.  Avoid the need for most medication to begin with.  If you do need an rx for whatever reason, see if you can get a $4 option from Target/Walmart etc. 

Insurance is for emergencies, catastrophes.  Your preventative care is covered by Obamacare.  For most people, medical costs can be significantly reduced by the above measures.

dtp1987

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Re: Any ways to cut healthcare?
« Reply #9 on: April 11, 2014, 12:55:13 PM »
I haven't spent any time researching ACA options, but how is your monthly cashflow? Can you increase 401k contributions to reduce your taxable income and thus increase your subsidy?

Our income would have to decrease greatly. I believe every household that makes over 30,000 is charged higher. If under 30,000 you get the low rates. Our taxable income would have to go way down, and I don't think we could possibly invest enough to bring it down that much...

That is not correct. You are eligible for subsidies until your income (MAGI) exceeds 400% of the federal poverty guidelines, which for two people this year is $62,920.
http://familiesusa.org/product/federal-poverty-guidelines

So the $30,000 number is totally irrelevant. The subsidies are higher if your income is lower, but there is no magic number where suddenly insurance is cheap or suddenly it's expensive--the subsidies decrease *gradually* and *regularly* as your income increases.

But for this year you have waited too long. To make sure that people don't go without insurance and then suddenly try to buy it when they get sick, they had to impose a deadline and that deadline was March 31. (If you started applying before 3/31 but didn't finish--in other word if you created an account at your state's Obamacare exchange website but didn't finish the process--then you can have an extension until April 15; just log in to your account and finish the process.)

Still, hopefully this advice will help you when the next open enrollment period starts in December.

Very interesting. Well we have a low plan that we are able to carry until the end of the year, but rates look like they are going to jump up once we get on the new program that is mandatory for 2015.

How do I find out the website to sign up my state's program?

And to all the others who gave me advice on taking care of ourselves, thank you. My wife and I are actually in excellent shape and in our mid 20s. We eat really well, take care of our bodies, and use very little medical care. Neither of us smokes either

ASquared

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Re: Any ways to cut healthcare?
« Reply #10 on: April 11, 2014, 04:09:14 PM »
Great job staying healthy.  Keep it that way.

healthcare.gov - will direct you to your state specific options