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I'm self-employed, and the 2016 rates have me really thinking about not carrying insurance. Raised my deductible to just over $6000 from $3750, very high co-pay and generally awful coverage for everything, and it's going up from $202 to $252.
It sounds like people have just been getting refund money withheld for non-compliance, anyone had to pay the fine without a refund being in play? Seems like the thing to do is just withhold aggressively so you don't have a refund they can attach for the penalty.
I'm self-employed, and the 2016 rates have me really thinking about not carrying insurance. Raised my deductible to just over $6000 from $3750, very high co-pay and generally awful coverage for everything, and it's going up from $202 to $252.
It sounds like people have just been getting refund money withheld for non-compliance, anyone had to pay the fine without a refund being in play? Seems like the thing to do is just withhold aggressively so you don't have a refund they can attach for the penalty.
Are you a high user of your plan? $3024/year in premiums is sure a heck of a lot less expensive than the ER bill if you break your leg..or worse. If you are a high user, finding a plan with a lower out of pocket costs, but a bit higher premiums, would probably be more cost effective. If you are a low user, does the out of pocket costs matter if you aren't going to go to the doctor? Also, being self-employed, you get to deduct your premiums so, your net cost is about 1/2 of that. Then, if you do max out your plan, if you are within the 10% rule, you can deduct the costs above 10% of your AGI on your personal taxes----or better yet, get a HSA qualified plan, put money away into that either personally or through the business and write off every dime you put into that plan. If you are single, under 55, that is $3350 you can put into a HSA, totally tax free. That knock off ~$500 on your taxes depending on your tax bracket, so now that plan costs you about $84/month.....
When you do your January Estimated payment, Make sure it will be over the underpayment rules, but small enough that you Write a check for the final Taxes you have to pay.
Are you a high user of your plan? $3024/year in premiums is sure a heck of a lot less expensive than the ER bill if you break your leg..or worse. If you are a high user, finding a plan with a lower out of pocket costs, but a bit higher premiums, would probably be more cost effective. If you are a low user, does the out of pocket costs matter if you aren't going to go to the doctor? Also, being self-employed, you get to deduct your premiums so, your net cost is about 1/2 of that. Then, if you do max out your plan, if you are within the 10% rule, you can deduct the costs above 10% of your AGI on your personal taxes----or better yet, get a HSA qualified plan, put money away into that either personally or through the business and write off every dime you put into that plan. If you are single, under 55, that is $3350 you can put into a HSA, totally tax free. That knock off ~$500 on your taxes depending on your tax bracket, so now that plan costs you about $84/month.....
I hear what you're saying. I have been to the hospital twice in the past 25 years. Once for a broken hand that didn't result in any treatment or bill, and once for a kidney stone that cost me some $$ (but way, way under deductible) in 2010.
Thanks very much for expanding on the tax angle- I need to look into that more. Obviously that's a huge, huge difference.
I have friends who paid into Obamacare with no subsidy and it was not tax deductibe, they paid out of pocket and it was not deducted from tax
They were not self employed though
The key is "self-employed".
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