Family health insurance for $1.00 a month

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.

10 comments

  1. They are not breaking law. I am happy for them that they can screw over the government and us taxpayers. But what is the alternative ? Going from an income based test to an asset wealth test plus income? How many seniors would lose if they counted houses, cars, 401Ks, boats, trailers, 2nd home, and maybe even 529s? Senator Warren is pushing a wealth tax now for the super “rich” which will trickle down to the middle class like every other tax. Sometimes it is better to let a few use the loophole than to change to something worse.

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  2. That is a SCAM for every tax payer picking up the tab. In other words it’s no different then claiming welfare when you have assets. Unfortunately when the government decides to help out we -at the price.

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  3. Fair is fair. He’s not breaking the law, but instead using a loophole. I pay $1,500 per month with a $10,000 annual deductible, and I’m not complaining. I wish I had that $170 per month free ride the seniors get. In a nutshell, the system is broken.

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    1. There’s no free ride…we are 70 and pay nearly $400/mo for Medicare PLUS our medigap of $100+, due to income level, even though retired. Thankful our blessings, too.

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  4. I wouldn’t get all worked up about it. There aren’t many families in the category described in the blog and if Congress starts to rectify a situation that affects a few, then no telling what the remedy would do to the many.
    One of the solutions would be to count net worth instead of income and Senators Warren and Sanders would have a field day with that idea. I’m sure there are seniors paying base rates for Medicare who also have high net worth but avoid IRMMA.

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    1. You are probably right to some extent, but the fact remains seniors, regardless of net worth pay at least $170.10 each. The figures I quoted were for families of four and five and effectively manipulate the system. RMDs, MAGI and IRMAA pretty much take care of higher net worth retirees as well.

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      1. Not true all seniors pay $170.10. There are some Medicare Advantage plans that reimburse monthly much of the Part B premium. And there are Medicare assistance programs for the lower income seniors.

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      2. True for some, but with MA they also give up the total freedom when receiving health care and must use networks. There are tradeoffs.

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    2. I’d be surprised by this case. With RMD’s and pensions and SS this would be hard to do for most. I’m not clear on where one could hide all their net worth. Please explain for us

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