General Discussion
Showing Original Post only (View all)How an additional $1,000 in income can cost you $6,420 more in premiums in CA [View all]
Calculator:
http://www.coveredca.com/calculating_the_cost.html
Number of people in the household 2
Annual household income $62,000
Age of the first adult 55
Age of spouse 55
Estimated monthly silver plan premium (without subsidy) $1,026
Estimated tax credit from the government $535
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Your estimated monthly silver plan premium $491
Run the same scenario, except income goes up by $1,000 to $63,000:
Number of people in the household 2
Annual household income $63,000
Age of the first adult 55
Age of spouse 55
Estimated monthly silver plan premium (without subsidy) $1,026
Estimated tax credit from the government $0
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Your estimated monthly silver plan premium $1026
Your premium jumps from $491 to $1026 per month.
$1026-491=$535
$535x12=$6420
You have to spend $6420 more per year on premiums because your income went up by $1,000.
The additional $1,000 puts your over the threshold so you are no longer eligible for subsidies.