Will Obamacare Help Or Hurt You?

Earlier this week the White House released partial information about the new “Marketplaces.”

Chart taken from an article in the Texas Tribune.
Chart taken from an article in the Texas Tribune.

Unfortunately, the information they released is not complete.  It only answers questions for people who only consider premium when they buy insurance.

As an American, who happens to also be an insurance agent, I am advising my clients to wait until October 1 before they make a final decision whether Obamacare is as good as it has been advertised by the White House. The numbers above look wonderful, provided you qualify for a full government subsidy.

Unfortunately, the criteria for government subsidies are not as generous as they have been advertised for successful small business owners and others who are required to obtain their own health insurance.

The White House like to point out that 55-60% of Americans will get their health insurance at work.  They will not be eligible for government subsidies.

Unfortunately for Americans who are covered as dependents on someone else’s group health insurance plan, they are not eligible for any government subsidy.

Unless their parent or spouse’s employer pays the premium for the entire family, they are required to pay the full cost for health insurance. People who are in this situation may benefit from the SPLIT BENEFIT strategy.

The chart above shows the best-case scenario.  Not all Americans will qualify.


The White House illustrates how little a 27 year-old earning $25,000 a year will pay.  That is not realistic for all 27 year-olds.

When I was 27 years-old, I was married and had two children.  Our combined incomes was way over $25,000.  We would not have qualified for a full subsidy.


The chart assumes that a family of four will have a house-hold income of $50,000.  A family like that will get a large government subsidy but many moderately successful small-business owners, with whom I work, make more than that amount.

If a couple earns a combined income of only $70,650, they will only get a partial subsidy.  Once their hard-work has resulted in a house-hold income of $94,200 they will get NO federal subsidy or help from their employer.  They are responsible to pay the full premium.

The press release, that was intended to look so good, from the White House fails to define the following criteria that is important to know before anyone commits.

  1. The White House release does not reveal the premiums for people of different ages.
  2. The White House release does not reveal which insurance companies will be available in the Marketplace.
  3. The White House release does not reveal how the 4 different metal options will actually work.


The final conclusion is that it is still too early to determine if Obamacare will be successful.  All of us will have to wait until October 1 to determine if Obamacare is going to benefit middle-class Americans.

Now that middle-class Americans have a better idea of how expensive health insurance will be under Obamacare, they will want to elect more cost effective strategies.

If you are one of them, click the banner below to subscribe to our email list.    You will get a free copy of our ebook, Alternatives to Obamacare, immediately and each week we will send you information that Baby Boomers can use about health insurance.