Assuming Republicans fail and Obamacare goes into effect, people will have to start dealing with the reality of how it works.
A large swath of working people will be eligible for a substantial portion of their premium being paid as a tax credit at the end of the year when taxes are done. Let’s say you’re a family of 4 and your premium is $1,400 a month, but you’re eligible for a $1000 a month tax credit. It is unworkable that you would pay $1400 a month, and then get a refund of $12k in April 2015
So your insurance provider will be paid based on your estimated subsidy and then deduct that from your monthly bill, so you’ll get a bill for $400 a month during the year.
But your 2014 subsidy is based on your actual 2014 income, which you can’t possibly know until 2014 is over. That means as part of your 2014 tax return, you’ll have to figure up the actual credit you are entitled to and compare it to the amount your insurance company received during the year. If you had more income than you expected, you’ll have to pay back some (but not all!) of the subsidy you didn’t qualify for.
Let the fun begin!
So if I just retire again and have negative income, Obamacare will essentially pay me $660 a month to not work! Isn’t America wonderful?
“Everthing’s free in America”. John Galt