The strange ways Obamacare works … don’t work those extra hours or it may cost you big time🤑

If you earn too much you may not face a penalty because Obamacare says your health insurance is unaffordable, but if you earn less and don’t have coverage you will be penalized because you are heavily subsidized to make the insurance “affordable.” 

Take a look below. 

In this example the breakpoint is earnings of $65,000. At $64,900 you are subject to a penalty of $1,390 a year because you are subsidized by $318 per month while paying a premium of $336 per month. Earn only $100 more and the penalty goes away, but your insurance now costs you $655 a month, an amount deemed unaffordable to you. 

So much for affordable health care. 

Imagine the person who works a few hours OT and as a result loses $4,470 in subsidies? Talk about a disincentive to work😮

Is there any wonder people are confused? 


  1. To make matters worse, you are “guessing” what your income will be from your prior year’s tax returns to determine your subsidy. If you work overtime, lose a job, get a better job, you do not know what your final costs are until the following year when you file your taxes. In your example of making $10 more, that would cost somebody at $3816 at tax time, that would be a disaster for most people. Of course this is an extreme example but it would be enough for me to examine if the penalty for not having insurance was less than having insurance vs not knowing what is going to happen at tax time.


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