Saturday, November 9, 2013

ObamaCare® and the Unemployment Rate

Most uninsured Americans and legal residents will be required to purchase health insurance by March 31, 2014. So starting next year, $95 is the minimum penalty* for those who don't enroll in healthcare coverage --- or 1% of their income above the tax filing threshold, whichever is greater.

* NOTE: The penalty for not enrolling in a healthcare plan doesn't include any healthcare coverage :(

It's estimated that everyone making more than $20,000 a year will be on the hook for at least $95 or more --- and for those earning less, it may mean free Medicaid (which also includes dental and eye exams, making it better than Medicare).

The $95 penalty is only for 2014. In 2015, the fee is $325 per adult or 2 percent of household income --- and in 2016, the fee is $695 per adult or 2.5 percent of household income (details below).

In other words, it will eventually be cheaper to buy healthcare insurance (and actually have a real good healthcare policy) rather than to pay the penalty (Although, the Democrats should have pushed much harder for Medicare for All.)

50% of all wage earners in the U.S. NETS $27,000 a year or less --- so many of Mitt Romney's 47% may qualify for Medicaid* starting next year. Medicaid will now be offered to everyone if you're under age 65 with a yearly income less than about $15,300, or $31,155 for a family of four. (Mitt Romney's capital gains are being taxed 3.8% to expand the Medicaid program (ha-ha-ha-ha-ha!)

* This may not apply to you if you are "pending" Medicare while pursuing a Social Security disability claim. Call 1-800-Medicare or contact your local state Medicaid office for more details. (If you find out anything, please let me know.)

If you don't qualify for Medicaid and are required to purchase health insurance (and have not done so by March 31, 2014) you will receive a penalty* on your 2014 tax return (filed before April 15th in 2015).

The penalty in 2014 is $95 per adult and $47.50 per child, and the fee is capped at $285 or 1 percent of household income (whichever is greater). Each year the penalty increases; in 2016, the fine rises to $695 per adult and will be capped at $2,085 or 2.5 percent of income. There is no penalty for a gap in coverage for less than three months.

Most people covered by their employer won't be affected, if you are lucky enough to even HAVE a job (See my post on ObamaScare). As the economist Dean Baker reminds us:

"The United States is still down almost 9 million jobs from its trend path. We are losing close to $1 trillion a year in potential output, with cumulative losses to date approaching $5 trillion. Many older workers lost their jobs with little hope of ever finding another one, even though they are ill-prepared for retirement. Young people getting out of school are facing the worst job market since the Great Depression, while buried in student loan debt. These numbers correspond to millions of dreams ruined."

One CBS article, although informative, still under-estimates the number of Americans still unemployed --- because it links to the Labor Department's U-6 rate for 13.8% -- but by using the U-7 rate, the unemployment rate is about 16.18% --- From the Labor Department >>> Check "persons who currently want a job". This adds another 6.3 million people to bring the U-7 rate up to 16.18%.

And yet, according to Shadow Stats, the alternate unemployment rate is at a whopping new high of 23.5% (That's why I can't find a damn job mom! YOU try looking for a job in this lousy labor market --- bet ya you can't find one!)

3,958,691 jobless Americans are receiving some form of unemployment insurance benefits --- but by the end of the year, those on extended federal benefits (1,370,774) will be terminated --- meaning, more people will have less to spend.

Number of Americans not in the Labor Force (October 2013) New all-time records:

-- Seasonally Adjusted: 91,541,000 -- up +932,000 from September's all time-record.

-- Not Seasonally Adjusted: 91,463,000 -- up +831,000 from September's all-time record.

Obamacare and the unemployment Rate

No comments:

Post a Comment