LISTEN UP
OBAMACARE SUBSIDIES Plans may cost less than you think.
The Arkansas Insurance Department released prices earlier this week for the new Obamacare plans that will be sold on the Arkansas Health Insurance Marketplace. But don’t just look at the sticker price — for many, the premium prices will be reduced automatically by subsidies. WHO ARE THESE PLANS FOR? Only for people who buy their own private insurance or are currently uninsured, NOT for people that get insurance from their employer or through a public program like Medicare or the existing Medicaid program. WHO GETS SUBSIDIES? Subsidies are available on a sliding scale to people between 139 and 400 percent of the federal poverty level (approximately $15,000 to $46,000 for an individual, or $31,000 to $94,000 for a family of four). People above 400 FPL will have to pay the full sticker price. THE “PRIVATE OPTION”: People below 139 percent FPL will choose among certain plans on the marketplace and pay zero premiums, via the “private option” for Medicaid expansion. MANY PEOPLE SHOPPING ON THE MARKETPLACE WON’T PAY STICKER PRICE: • Around 87 percent of uninsured adults eligible to shop on the Marketplace will be eligible for subsidies (95 percent if we include the “private option” folks). • Around half of those currently buying their own
private insurance (and 70 percent of young adults currently buying their own private insurance) will be eligible.
THE
BIG
HOW DO YOU CALCULATE RATES? Each individual in a family unit has his or her own premium price. So to find out the price for our family of four below, we have to add up the premiums for mom, dad, and the two kids. You can see all the rates here: arktimes.com/rates. • The Duggar Rule. Okay, we made up that name, but only the three oldest kids get counted in a family’s premium price. Any kids after that do not add to the premium.
PICTURE
HOW DO YOU CALCULATE SUBSIDIES? Subsidies are based on income level and family size and are benchmarked to the second-cheapest Silver plan. Subsidies can be used for a more expensive plan, in which case you may pay more than your “expected family contribution.” Or they can be used for a less expensive plan, in which case you’ll pay less. Below are three examples of people in Central Arkansas: a 30-year-old individual, a married 60-year-old couple, and a family of four: mom and dad are 40 and they have two kids. We looked at the cheapest Bronze and cheapest Silver plans available in Central Arkansas — what’s the sticker price and what’s the price after subsidies?
30-YEAR-OLD INDIVIDUAL PERCENTAGE FPL
INCOME
CHEAPEST BRONZE
CHEAPEST BRONZE AFTER SUBSIDIES
CHEAPEST SILVER
CHEAPEST SILVER AFTER SUBSIDIES
139%
$15,971
$205.49
$0
$260.79
$33.45
150%
$17,235
$205.49
$0
$260.79
$46.29
200%
$22,980
$205.49
$54.24
$260.79
$109.54
300%
$34,470
$205.49
$185.07
$260.79
$240.37
400%+
$45,960 or higher
$205.49
$205.49
$260.79
$260.79
MARRIED COUPLE, BOTH 60 YEARS OLD PERCENTAGE FPL
INCOME
CHEAPEST BRONZE
CHEAPEST BRONZE AFTER SUBSIDIES
CHEAPEST SILVER
CHEAPEST SILVER AFTER SUBSIDIES
139%
$21,559
$982.74
$0
$1,247.20
$7.01
150%
$23,265
$982.74
$0
$1,247.20
$24.34
200%
$31,020
$982.74
$0
$1,247.20
$109.59
300%
$46,530
$982.74
$50.63
$1,247.20
$315.09
400%+
$62,040 or higher
$982.74
$982.74
$1,247.20
$1,247.20
FAMILY OF FOUR — PARENTS ARE BOTH 40 YEARS OLD AND THEY HAVE TWO KIDS PERCENTAGE FPL
INCOME
CHEAPEST BRONZE
CHEAPEST BRONZE AFTER SUBSIDIES
CHEAPEST SILVER
CHEAPEST SILVER AFTER SUBSIDIES
139%
$32,734
$462.76*
$0
$587.30*
$66.80
150%
$35,325
$462.76*
$0
$587.30*
$92.44
200%
$47,100
$692.70
$23.33
$879.10
$209.73
300%
$70,650
$692.70
$335.41
$879.10
$521.81
400%+
$94,200 or higher
$692.70
$692.7
$879.10
$879.10
* Children below 200 percent of FPL qualify for ARKids. We assumed eligible kids enroll in ARKids, so the family only has to purchase plans for the parents.
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INSIDER, CONT. the partisanship that came with the opening round of discussion. But, in the end, the press releases don’t count. The proposed legislation and the roll call votes will tell who believes in ethics and who doesn’t.
Bond issue groundwork The Little Rock Board of Directors won’t vote until Oct. 1 on calling a Dec. 10 election on a bond issue of up to $73 million to renovate the Robinson Center, but backers are already preparing the campaign talking points. Telephone pollsters from Opinion Research Associates have been in the field asking questions testing talking points for the bond campaign. Among the reasons being tested for reasons to vote for the bond issue: It will improve the quality of the music hall for concerts and shows (fewer, but better seats); it won’t require a tax increase (the existing hamburger tax will pay for it because an old bond issue to which part of the tax is pledged is expiring); a significant amount of the tax is paid by non-Little Rock residents; tourism is good for the city; the tax won’t go up. If the bonds are approved and sold, work would begin next summer and take about two years. Some of the cost of the bonds will be for relocating people that currently use the offices and other rooms in the WPA-era structure. The work would lower the stage and add a glass-walled area around the north side of the building, overlooking the Arkansas River. Some premier event space is contemplated.
CORRECTION In last week’s “Ask the Times” we stated that people who choose to enroll or renew in a non-Obamacare plan in late 2013 would face a penalty in 2014 when the law goes into effect. In fact, plans currently available on the private market should meet the minimum essential coverage standard mandated by the law and will not incur a penalty. It is the special 364-day plans (such as “Essential Blue Freedom” from Arkansas Blue Cross Blue Shield) that will incur a penalty. For full explanation, see here: arktimes.com/ obamacare. www.arktimes.com
SEPTEMBER 26, 2013
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