I was hoping to get some opinions about this from smarter people than myself.
Last week I received a letter from Kaiser Permanente (my health care provider) saying that in 2014 I would need to purchase my Health Coverage through the California Exchange rather than directly through them. California will open the Exchange in October 2013 so individuals who do not receive Insurance through their Employer will be able to shop for and obtain Health Insurance Policies for 2014. The “Affordable Care Act” mandates that, starting in 2014, all Americans are required to purchase Insurance Coverage or pay a fine. Those who make below a certain level of Income can receive a Government Subsidy to help them afford the Coverage. They provided a Website called Covered California where you can use an Online a Calculator to estimate IF YOU QUALIFY FOR A SUBSIDY and WHAT YOUR POLICY MAY COST. I am defining SPENDABLE INCOME as the amount of money left over after paying State Taxes, Federal Taxes (including Self Employment Tax) and Mandated Health Insurance Premium (with or without the Government Subsidy).
A 60 Year Old Self Employed California Couple will have the SAME AMOUNT OF SPENDABLE INCOME whether they earn $36,000 or $63,000 (about $25,000) This same Couple will also have the SAME AMOUNT OF SPENDABLE INCOME whether they earn $62,000 or $85,000 (about $39,000) . This Gross/Net Income Anomaly is created by the Government Subsidy. This couple will not qualify for it if they earn more than $62,000.
I posted my findings as a webpage with links to the sources: http://www.lagunapainter.com/2014