The following quotes are from blogs by families that accumulated assets and “retired” in their thirties. They have no mortgages, no debt. They have made choices. The family paying $1.00 per month for health insurance has a net worth of $2,800,000 and travels extensively.
Health insurance ACA payment $52.43 Out first monthly payment for our new Affordable Care Act health insurance
Our current 2021 healthcare premiums are $1.15 per month thanks to very generous Affordable Care Act subsidies that we receive due to our low ~$45,000 per year Adjusted Gross Income. I paid for December in a previous month, so there is no cost for December. The “American Rescue Plan Act” passed in March 2021 makes the Affordable Care Act premiums even cheaper through 2022. Households with modified adjusted gross incomes (MAGI) below 150% of the federal poverty level get some silver-level health insurance plans completely free. We opted for a slightly more expensive silver plan that comes with $1,000 in cash back incentive rewards. Our total cost is just over $1 per month now!
What’s wrong with this picture?
The typical senior pays $170.10 for Part B Medicare. They also pay over $200 per month for Part D and Medigap coverage. In other words, families who accumulate wealth and then choose to live off their investments, who drop out of the daily work grind, receive substantial government subsidies which lowers their health care costs far below those on Medicare – most often seniors with far less in net worth.