I've been playing with the Kaiser Family Foundation Health Reform Subsidy Calculator and noticed something interesting...
Scenario One:
$93,000 annual income
Family of 4
Age 50
No Employer Coverage
Estimated annual premium: $16,858
Out-of-pocket cost after government subsidy: $8,835
Scenario Two:
$94,000 annual income
Family of 4
Age 50
No Employer Coverage
Estimated annual premium: $16,858
Out-of pocket cost: $16,858 (ineligible for subsidy)
Bottom Line:
At age 50, a $1000 increase in income costs $8000 in additional premium.
At age 60, a $1000 increase in income costs $15,200 in additional premium.
At age 64, the $1000 increase adds $18,500 to the premiums.
Smart guys. Really smart.