I'm not convinced Obamacare is going to help many. I was hoping that it would help me but I am beginning to have serious doubts. Hopefully the final numbers will be in come October 1st but right now it looks like it is not going to help me. I am currently paying $13,000 per year for a family policy with a $6000 deductible. I pay 100% of all non preventative costs of everything (including prescript
ions) and after that $6000 deductible the insurance company pays 100% of all costs (including prescript
ions). If my deductible was used in full my total cost would be $19000 per year, of which I can write off absolutely everything, which saves me approximately $5000 per year in federal taxes, for a final cost to me of around $14000 per year.
Right now it looks like under Obamacare my premiums would be the same $13000 but I would only pay $8500 and the government would subsidize $4500 of my premium but my out of pocket costs would be $12000 per year instead of the $6000 I have now. On top of this I'm not sure how the tax situation would work. Assuming that I could write off all of the premium I paid (the $8500), as I do now, and I could write off the maximum $7000 in medical HSA expenses, this would be a total tax savings of $4000.
Now my total costs are $14000 per year - assuming I met the entire $6000 deductible for the year
Under Obamacare: $16,500 - assuming we met the out of pocket limit of $12000 per year, and this is assuming I could write off these expenses on my taxes as I do now, which I'm not so sure I will be able to
A lot of people will get very inexpensive premiums figuring in the subsidies but that does not pay the copays and other out of pocket expenses, which could be you would have to pay out of your own pockets, 20% of everything until you hit a very high out of pocket expense. The insurance itself will only be cheap if you don't use it. If you do use it your out of pocket expenses and copays could wind up being much more than you can possibly afford.