Out of pocket

Obamacare is in the news because of temporary subsidies started during Covid. A single man earning $50,000 per year would have a premium of cost of 8.5% of $50,000 or $4,250. This does not include the annual deductible for the Silver plan which is about $5,000 for a total out of pocket cost of $9,250. For families this would be about double. If the current subsidies are not renewed the out of pocket cost for the single man will increase to $11,000. For most people these costs seem unbelievable, since most people have health insurance through their employer, which often times pays more than half the cost and for some Cadilac plans that union workers have, the company pays the total cost. The single man with the Silver ACA plan must pay over $9,000 out of pocket each year before the insurance pays anything. For most it means that if the cost goes to $11,000 it will mean very little, since they can’t afford the nine.