THE REAL COST OF THE POTUS BHO’S PENNACLE LEGISLATION CALLED ACA WILL COST A PERSON WHO IS 45 WITH INCOME OF $28,735 WHICH IS BELOW THE POVERTY LEVEL USING THE SILVER PLAN IN MOST AREA WILL PAY $5,733 WITHOUT ANY SUBSIDY FROM THE BHO–THE TAX MANDATED OR PENALTY FOR NOT GETTING INSURANCE IS $95 OR 1% OF YOUR 2014 INCOME- PRICELESS

What is the federal poverty level?

In 2013, the federal poverty level is $11,490 for an individual and $23,550 for a family of four. Four times the poverty level amounts to $45,960 for an individual and $94,200 for a family of four. One’s “modified adjusted gross income” (MAGI) is the benchmark; that includes wages, salaries, tips, capital gains, and other income, minus contributions to flexible spending accounts and retirement plans, and certain deductions. This sheet explains exactly what is included in the MAGI.

Does the amount of the tax credit vary with income?

Yes. People living at between 100 and 133 percent of poverty level will pay at most 2 percent of their income for health insurance, while those at between 300 and 400 percent of the poverty level will pay a maximum 9.5 percent of their income. There is a sliding scale for incomes in between, as laid out in the chart in this report.

The cost of the premium is based on the “silver plan” – the second-lowest-cost health plan of four that are offered in each exchange. The silver plan covers 70 percent of health-care costs. The least-expensive plan, bronze, covers 60 percent. The gold plan covers 80 percent, and the platinum plan covers 90 percent.

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So how much will insurance end up costing after the subsidy?

That will depend on where you live, how much you make, and which plan you choose. The nonprofit Kaiser Family Foundation presents the example of Pat, who is 45 and will have a 2014 income of $28,735 (250 percent of poverty). The “silver plan” in Pat’s area is expected to cost $5,733. But under the ACA, Pat would pay at most 8.05 percent of income on health insurance, or $2,313 ($192.74 a month). So Pat’s tax credit is $3,420.

What if I can’t afford health insurance, even with the subsidy?

If you still can’t afford insurance, or don’t want to buy it, you can pay a $95 penalty or 1 percent of income in 2014. That penalty will rise to $325 or 2 percent of income in 2015 and to $695 or 2.5 percent in 2016. After that, the increases are indexed to inflation, with a cap.

http://www.csmonitor.com/USA/DC-Decoder/2013/1001/Obamacare-101-how-the-federal-subsidy-works-video