The Truth Hurts – Conservative Opinions
There is a gentleman out in
who authors a blog called Mr. Money
Mustache. His thing is that if a person
or family saves a lot, is very careful with their money and doesn’t spend their
income on useless unneeded things the person or family can retire very early with
a nice investment portfolio that produces a very comfortable income.
Of course Mr. Mustache is not typical. He has the skills and experience to build a house, repair a car and do all sorts of things that the average person just cannot do. He also leads a healthy lifestyle. But his philosophy is sound. His health insurance is a high deductible ($10,000) plan, but he has to change with health care reform. Here are his conclusions.
Obamacare: Friend of the Entrepreneur and Early Retiree . . .
So we would be doubling our premiums, but cutting the deductible in half, as well as gaining prescription drug coverage (a $20 copay after deductible) and some other goodies. And the new plan is HSA-eligible, which means all costs will be covered with pre-tax money. More insurance for more money – not my favorite bet to make, but also not completely devoid of value.
But wait, there is more. His premiums do not double. There are generous subsidies under health care reform!
When you select a 2014 plan, a little box pops up: “check if you are eligible for a subsidy on this plan”. Working through the options, here is what I see for my own family:
Whoa. So although I could pay a of $5520 per year for this new and improved coverage, in reality I will only pay this much in years where my annual income is over $80,000. For incomes below that generous level, the federal subsidy kicks in and my net cost drops, until I get to the point of With annual living expenses of , we could in theory structure our investments such that we live the current lavish lifestyle get fully subsidized health insurance simultaneously**.
As for difficulties in signing up, well his experience is this.
Well don’t expect that to be reported by the press, it doesn’t fit the script that health care reform is a disaster.