Expanding Obamacare through the Rescue Plan

For the next two years, the American Rescue Plan would expand the tax credits to higher earners and cap the maximum premium anyone is expected to pay at 8.5 percent of their income. It would boost tax credits at lower incomes, as well: People making less than 150 percent of the federal poverty line ($19,320 for an individual) would be expected to pay $0 in premiums for a benchmark plan, for example.

For those with lower incomes, the bill would boost incentives for states to expand Medicaid by having the federal government pick up the tab for new recipients. Twelve states, including Florida, Georgia and Texas, have refused to accept Medicaid dollars through the ACA. It’s unclear whether the bill would affect their calculations. Via NBCNEWS.COM

Wonder what happens after two years

4 comments

    1. No, I mean vote buying as in quid pro quo, or as in bribery where you are promised money or free benefits for your vote. Where super PACS have access because of their money and the “people” who they are suppose to represent, do not have access.

      It used to be that the people would vote for politicians who support their views on issues and policies. But in the last few election cycles, more and more politicians are promising direct money and free benefits. Voters are choosing politicians by how much money and free stuff they get.

      Just for the record, this has be going on for centuries. But now there is no longer any pretense on the direct relationship of money for a vote. It used to be that a city would get a bridge or a new school, now it is stimulus checks or COLAs directly to voters.

      It is a good thing the United States in not a democracy but a Federal Republic. Most democracies will turn into mob rule. If the people want something it only takes 51% of the vote no matter if it really good for the nation long term. But the mob is only satisfied for the short term until they lose control.

      Liked by 1 person

      1. “It used to be that the people would vote for politicians who support their views on issues and policies.”

        I still don’t understand. If people think they should get more money, is that not an issue? If politicians decide to give it to them, is that not a policy? I can’t escape the impression that you’re discriminating on the basis of what policies you agree with (that’s democracy), versus policies you dislike (that’s “buying votes”).

        Liked by 1 person

  1. I am not current on the latest proposal for Obamacare or the ACA. But every time I see income limits it gets me wondering.

    If the US poverty line for one person in 2021 is $12,880, why do they or will they set the ACA program limit bottom at 150% of the poverty line (or $19,320) ?

    If you make the current legal federal minimum wage for 40 /hr per week, your income would be about $15,080 /yr, which is above the poverty line of $12,880. This makes you the working poor, not impoverished. (I am not saying that is a good thing either.) Another interesting note here is in 2021 the Standard Deduction per the IRS for a single person is $12,550. It is like the IRS almost doesn’t tax you if you are below the poverty line. Plus, there are probably other earned income tax credits and other programs that I never had to learn about because I always made too much money.

    If you make the proposed $15 /hr minimum wage, you would make $31,200 / yr which is over 61% more earnings than the 150% limit. This makes you eligible to pay up to 8.5% of your wages for medical premiums. Assuming that you do pay the maximum rate (not likely), that would be $2,652 of your new found wages that you will not get to take home along with your higher social security and other taxes that are withheld.

    If we set program limits at some amount higher than the poverty line, is that the true poverty line? Therefore, if $19,320 is really the poverty line, divide that by 2080 hours, it works out to be a true minimum wage of $9.29 / hr.

    So why is $15 / hr the magic number that is going to save the poor and not say $10 / hr? Maybe $10 should be the new minimum wage not $15 /hr. At least that is what the governments official figures is telling me.

    If the current poverty line is 85% of the current federal minimum wage, when we hit the proposed new minimum wage of $15 / hr, will the new poverty line be $26,520 /yr. Will the new ACA eligibility be 150% of $26,520 or $39,780 /yr?

    I also wonder how many more people will be trapped at the new minimum wage of $15 /hr of not being eligible for free healthcare because they now make too much? This problem will always be there no matter where they set the minimum wage and eligibility limits. My worry is that politicians will come up with new solutions that in all likelihood is going to make it worse.

    I wish I had the answers. But with vote buying, we will never find them.

    Liked by 1 person

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s