Retired seniors, inclusive of spouse, who receiving income
from Social Security (est. income of $30,000/year) are eligible for 2016
federal tax credits of $1,669.79 to be applied against health insurance premium
payments.
When a low-income senior purchases health care plan with
UnitedHealthcare, it will cost $2,373 per month, or $704 net of tax credits.
Such plan will include an annual deductible of $2,000, and an annual out of
pocket limit of $6,000. With annual costs of $8,448 this represents 26% of a
retiree’s cash income in addition to payments for costs that excluded as
deductible.
To purchase a 2016 health care plan with UnitedHealthcare, a
3 Star company rated Gold will require monthly premiums of $2,038, or
$24,456/year.[i] This
health plan will consume 9% of income and will be one of the top thee largest items
in senior's a spending budget.[ii]
There will be a $3,750 annual deductible and an annual max out of pocket payment
of $6,850. This plan includes a spouse aged 81. The holder of insurance is
male, aged 86. This health insurance plan describes premiums for people at
the top of the earnings for the population.
As the incomes of seniors decline, at the age between
75 and 95 their available funds will most likely be substantially below the
family average. The health plan expenditures could possibly rise to more than
30% of a senior's disposable income unless health insurance is already provided
through a retirement plan. Even with the benefits of tax credits health
insurance premiums become a significant burden, especially for low-income
people.
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