With Obamacare Gone, What Next For Retirees?


With the coming in of President Donald Trump, the Republican Party has tried to cripple and repeal Obamacare, which is the Affordable Care Act of 2010.

The attempts, however, were also experienced while President Barack Obama was still in office.

The cost of insurance has increased, that is why most people, especially from low-income homes, have seen the benefits of Obamacare.

Being in a particular income range means you need to look for ways to cut premium costs, done through acquiring the health insurance and qualifying for a tax credit, which may at times run into thousands of dollars.

Tactics for the Retiree

One needs to understand how to structure their income to be eligible for tax credits, which works best for those in retirement. Individuals who are aged above 55 and are not on Medicare can get tax credits. For these people, the monthly premium usually runs to more than USD500.

They can qualify for a tax credit that will reduce their premiums next to nothing, but their income has to be structured properly. Someone who has retired early and is enrolled under Obamacare pays about USD160 every month post-subsidy for a Silver plan by a local service provider.

This person’s income is little since they are no longer on a payroll, making them eligible for government payout for insurance. Without the ACA, such people wouldn’t be able to stop working. The same cover without Obamacare would have cost close to a thousand monthly payment.

Do the Math

If Obamacare is done away with, most beneficiaries, especially the retirees, will be forced to think about how much they need for a comfortable lifestyle and where the money will come from since the majority are not on a payroll. Hopefully, they have something stashed in a retirement account.

Afterward, ensure the income on the tax return reads more than 138 % poverty level, or at least more than 100 %, especially in states that did not extend Medicaid. Once there, the income should be maintained under the 400 % poverty level.

Virtually all tax credits are swept away if income stands at above 400 %, even if it is just for a dollar.

Retirees cannot focus too much on private insurance as that would lead to saving enough for an unknown need that may or may not occur. In other words, they would have to work forever. The higher the insurance premiums go; the more individuals will hope the subsidies are increased to bridge the difference.

Obamacare helped retirees carry out their retirement plans. The plan should be to get one’s income to less than 250 % poverty level and reduce the amount from your pocket when acquiring a Silver plan, which may be helpful if one needs insurance. For an instance, paying a USD578 monthly premium in Florida would earn a retiree up to a USD6, 500 deductible in a Silver plan.

Whether it will be repealed or not, though chances are it will be, retirees and everyone, in general, should start thinking about a get-out plan. The first initiative would be to talk to insurance providers or your accountant to find out what works best for you and what you could do with the savings you have to ensure you still can access quality affordable health care.


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