General Discussion
In reply to the discussion: How an additional $1,000 in income can cost you $6,420 more in premiums in CA [View all]muriel_volestrangler
(101,307 posts)133% of FPL for a couple is about $20,000; the calculator correctly shows that a couple over 55 with a combined income of $63,000 will probably be paying over 20% of their gross income to get a silver health plan.
I, and the others here, are not "ignoring a big factor"; the MAGI is closely tied to the income. As I said, IRA contributions seem to be the one major item that will make some difference. This seems to show that a couple with a combined income of up to about $69k would be well advised to contribute as much as it takes to reduce your MAGI below the threshold. If you can't do that, then you will be better off by reducing your gross income, by working less.
This is a bad way of setting fiscal policy. We're not talking about rich couples finding themselves in a strange tax situation; 2 people each earning $35K a year will hit this, and they could lose an eighth of their disposal income, if their earnings go above the threshold.