Here’s an interesting look from National Review.
Premiums for Obamacare policies next year will be so high that millions will be exempt from the tax penalty whether Congress repeals it or not. Even the skimpiest coverage now costs so much that many uninsured people with six-figure incomes will be exempt. The individual mandate is repealing itself.
For a 35-year-old couple, subsidies end at about $65,000 in income — but Bronze-level coverage costs an average of nearly $7,800, according to the Kaiser Family Foundation’s premium calculator. This premium will exceed 8 percent of the couple’s income unless their earnings approach $97,400. A 31-year-old couple with a toddler loses subsidies at an income of about $82,000, but would have to pay more than $9,800 for a Bronze plan — meaning they would be exempt from the penalty unless their earnings total nearly $123,000.
Middle-aged people pay higher premiums under Obamacare, making them even more likely to qualify for exemptions. A 50-year-old couple ineligible for subsidies (which end around $65,000) would face premiums of nearly $11,400 for a Bronze policy, freeing them from the penalty if their income is below $142,000. At the extreme, a 64-year-old couple (facing the same $65,000 subsidy cutoff) wouldn’t have to pay the tax penalty unless their earnings topped $239,000.
Lavish premiums don’t buy lavish coverage. Family deductibles for Bronze plans average more than $12,000, and limits on out-of-pocket spending for covered, in-network services average nearly $14,000. Our hypothetical 35-year-old couple would have to shell out more than $21,700 in premiums and medical bills before their insurance company began bearing the full cost of their in-network expenses. Hardly an appealing proposition.
I looked at an Obamacare plan for my family last month. Thankfully, I don’t need it, because it was ridiculous. The Bronze plan was $28,992 per year with a $12,500 deductible. We do not qualify for subsidies, so a full year of coverage plus the deductible totals $41,492. And we are a pretty healthy family. Affordable? Hardly.