ACA Winners & Losers

In Ponzi schemes there are Winners and Losers. Winners are the ones who get more than their money back. ACA is not a Ponzi scheme. It’s more like a shell game.  If you find the pea under the little cup, you’re a Winner. But just try to keep your eye on it as they move those little cups around.

ACA Winners & Losers

Winners: People with lots of kids (especially college age and unpaid service work)*

               Self-employed, 1099 independent contractors and others who control their own wage AND

               The business pays for a lot of their goodies (vehicles, gas, cellphone, electronics, etc.)

               Millionaires (millions in assets combined with modest AGI income)

Losers:  Single people

               Married, dual income

               W-2 employees  

                *Family Size of 5 or more gets subsidy even with a six-figure + income.                          

As I sit down with self-employed people with 2-4 kids still in the target zone (through age 26), average savings has been significant. About $700/mo to $1,000/mo! But I have to remind them, that it’s not savings; it’s cost shifting. It’s an Advanced Premium Tax Credit (APTC). So the taxpayers are paying it.

In many cases, the APTC is LARGER than the entire premium they paid last year. AND they pay their own additional premium this year too. So the cost is HIGHER, but it’s MASKED by this enormous TAX CREDIT.

The exception:

Single guy on disability: He is able to pick up a $768/mo plan for $305/mo. That seems like quite a savings! But if you look, you will see the $463/mo taxpayer credit.

Some of the Winners don’t even know it yet! 

AND a part of the cost savings for families comes from moving their kids from private insurance to Medicaid (in California it is Medi-Cal). So a guy owns a business, married to stay-at-home mom, vehicles include Super Duty truck, Range Rover, Dodge Viper and more. Other toys (boats) too. And we are moving his kids onto Medi-Cal. Really?!?!