Achieve Financial Freedom Through Real Estate
Real estate is my favorite way to achieving financial freedom because it is a tangible asset that is less volatile, provides utility, and generates income. By the time I was 30, I had bought two properties in San Francisco and one property in Lake Tahoe. These properties now generate a significant amount of mostly passive income.
In 2016, I started diversifying into heartland real estate to take advantage of lower valuations and higher cap rates. I did so by investing $810,000 with real estate crowdfunding platforms. With interest rates down, the value of cash flow is up. Further, the pandemic has made working from home more common.
Take a look at my two favorite real estate crowdfunding platforms that are free to sign up and explore:
Fundrise: A way for accredited and non-accredited investors to diversify into real estate through private eFunds. Fundrise has been around since 2012 and has consistently generated steady returns, no matter what the stock market is doing. For most people, investing in a diversified eREIT is the way to go.
CrowdStreet: A way for accredited investors to invest in individual real estate opportunities mostly in 18-hour cities. 18-hour cities are secondary cities with lower valuations, higher rental yields, and potentially higher growth due to job growth and demographic trends. If you have a lot more capital, you can build you own diversified real estate portfolio.
People With Preexisting Health Conditions Can No Longer Be Denied Coverage
A preexisting condition, such as cancer, made it difficult for many people to get health insurance before the ACA. Most insurance companies wouldnt cover treatment for these conditions. They said this was because the illness or injury occurred before you were covered by their plans.
Under the ACA, you cant be denied coverage because of a preexisting health problem.
How Can I Buy Health Insurance During Open Enrollment
Although coverage under Obamacare is now guaranteed issue, theres a trade-off: enrollment in ACA-compliant individual market plans is limited to an annual open enrollment period .
Individuals who want to enroll in an ACA-compliant plan have the choice of enrolling through a state health insurance marketplace or off-exchange , although premium subsidies and cost-sharing reductions are not available outside the exchange. Learn how plan design and pricing may differ off-exchange.
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Do I Have To Enroll In An Aca
The ACAs individual mandate penalty was eliminated after the end of 2018 meaning that a federal penalty no longer applies to people who are uninsured in 2019 and later. However, some states have implemented their own individual coverage mandates.
For the most part, coverage needs to be ACA-compliant in order to meet the requirements of an individual mandate, but if you still have a grandmothered or grandfathered health plans , you can keep your plan for as long as it continues to be available.
Its in your best interest, however, to actively compare your plan options in the exchange each year including subsidy eligibility to see if you can get a better value by switching to a new plan.
How Is Obamacare Funded
To help offset the cost of the law, the ACA contains a revenue-raising provision that would place an excise tax on high-cost insurance plans, beginning in 2018. Most Americans receive health insurance through their employer and the cost of employer-sponsored health insurance is currently excluded from taxation.
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Who Qualifies For Obamacare Premium Tax Credit And Related Subsidies
To qualify for Obamacare premium tax credit, you must be an American citizen or legally present non-citizen living in the United States who does not have access to other affordable health insurance . Affordable employer-sponsored group health coverage is employee insurance that does not cost you more than 9.61 percent of your household income in 2022 and 9.12 percent in 2023, as determined by the IRS.
You do not qualify for premium tax credit if any of the following circumstances is true:
- You are married and filing taxes separately or refuse to file income tax
- You are incarcerated
- You have access to affordable employer-sponsored insurance but want to purchase family insurance because you cant afford the cost-share for family coverage under the employer group health plan.
Explaining Health Care Reform: Questions About Health Insurance Subsidies
Health insurance is expensive and can be hard to afford for people with lower or moderate income, particularly if they are not offered health benefits at work. In response, the Affordable Care Act provides for sliding-scale subsidies to lower premiums and out-of-pocket costs for eligible individuals.
This brief provides an overview of the financial assistance provided under the ACA for people purchasing coverage on their own through health insurance Marketplaces .
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How Many Consumers Receive Premium Subsidies
As of early 2022, there were 14.5 million people enrolled in plans through the exchanges nationwide, and the vast majority were receiving premium subsidies. For those enrollees, premium subsidies covered the bulk of their premiums: For people enrolled through HealthCare.gov , the average full-price premium in early 2022 was $594/month, but the average after-subsidy premium was just $111/month.
In short, the subsidies are a significant part of the affordable in Affordable Care Act. With each successive open enrollment period, awareness of the laws premium tax credits has continued to grow. But many Americans may still be wondering, Am I eligible to receive a premium subsidy and if so, what should I expect? This is particularly true through 2025, as the American Rescue Plan and Inflation Reduction Act make coverage much more affordable for millions of people.
Are Health Insurance Subsidies Available To More Consumers Now
For 2021 through 2025, subsidies are much more robust than they usually are. There is no subsidy cliff for this five-year period. Instead, nobody purchasing coverage through the marketplace has to pay more than 8.5% of their household income for the benchmark plan. And people with lower incomes pay a smaller-than-normal percentage of their income for the benchmark plan as low as $0 for people with income that doesnt exceed 150% of the poverty level.
In addition to the extra subsidies under the ARP and IRA, subsidy amounts were already considerably larger than they were prior to 2018. This has been the case since the Trump administration stopped funding cost-sharing reductions in the fall of 2017.
To cover the cost, insurers in most states now add the cost of CSR to Silver plan premiums. That makes the Silver plans disproportionately expensive, and since premium subsidies are based on the cost of the benchmark Silver plan, it also makes the premium subsidies disproportionately large.
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Is Marketplace Insurance Considered Government Funded
The federal government operates the Health Insurance Marketplace®, available at HealthCare.gov, for most states. Some states run their own Marketplaces. … Premium tax credits and other savings that make insurance more affordable. Coverage through the Medicaid and Children’s Health Insurance Program in your state.
Are People With Medicaid Or Chip Eligible For Premium Subsidies
In addition, premium subsidies arent available to people who qualify for Medicaid or CHIP, since Medicaid and CHIP generally provide even more financial assistance than premium subsidies.
Its important to understand that CHIP eligibility extends to much higher incomes than Medicaid eligibility. Kids in households with MAGI at 200% of the federal poverty level are eligible for CHIP in nearly every state, and there are several states where CHIP eligibility extends to above 300% of the poverty level.
If your kids are eligible for CHIP, they arent eligible for premium subsidies. That means the subsidy amount youll see when you enroll is just for the adults in your household, as the kids will be on CHIP instead.
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You Can Be Fined If You Dont Have Insurance
The goal of Obamacare is for people to be insured year round. If youre uninsured and dont obtain an exemption, you must pay a modest fine. Recent events have changed this fine, and beginning with the tax year 2019 it will be eliminated.
Some people think its intrusive for the government to require health insurance. ACA supporters argue that not having insurance passes your healthcare costs on to everyone else.
Delaying The Employer Mandate Had Modest Short
During the initial rollout in 2013, political pressure and angst in the business community led the Obama administration to delay enforcement of the employer mandate for a year and then extend the delay for some firms an additional year, until 2016. These delays were cited by critics as signs of the mandates ultimate unworkability, suggesting to some that the employer mandate should be scrapped altogether. RAND analysis of the delays impact estimated that the delay would have a relatively modest short-term effect on coverage and premiums, mainly because only a small fraction of U.S. employersless than 1%were affected by the delay. However, permanently repealing the employer mandate would have a substantial impact on federal spending, resulting in an estimated loss of approximately $149 billion in federal revenue between 2014 and 2024.
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How Much Are Obamacare Taxes
Even though the mandate no longer applies, there are still some taxes related to Obamacare:
- If you make more than $200,000 per year: Taxes increased in 2013 for individuals making more than $200,000 per year or $250,000 for married couples, some health care providers, and other health-related businesses.
- If you’re a business owner: If you have 50 or more employees, you must provide insurance to at least 95% of full-time employees or pay a fine.
Medicare And Medicaid Are More Affordable
If you have Medicare, the “doughnut hole” gap in coverage is being subsidized thanks to the ACA. There are many other ways that Obamacare affects people differently depending on their situation.
The federal government spends $1.27 trillion on health care alone, more than any other budget item. The fiscal year 2023 budget includes Medicare benefits of $847 billion and Medicaid benefits of $536 billion. The U.S. Department of Health and Human Services manages the programs at a current budget of $127.3 billion. As a result, health care costs the U.S. government more than Social Security and the defense budget .
The problem is getting worse. By 2030, spending on Medicare and Medicaid benefits is projected to rise to more than $2 trillion. If there’s one thing politicians don’t like, it’s having their hands tied when it comes to spending. That’s the real reason they agreed to reform health care in 2010.
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How Does Obamacare Help Small Businesses Provide Coverage For Their Employees
Included in the exchange options is an enrollment platform called SHOP a tool that allows small businesses to compare plans and enroll in coverage for their employees. SHOP plans proved to be much less popular than individual market plans, and most states no longer have SHOP plans available.In some states, however, there are still thriving SHOP markets.
Subsidy Amounts By Income For The Affordable Care Act
Updated: by Financial Samurai
The Affordable Care Act is a way to help lower-income individuals and individuals without health care afford health care. Although health care is still extremely expensive, the Affordable Care Act provides subsidies. This article will look at the subsidy amounts by income for the the Affordable Care Act.
Im a supporter of ACA despite the trappings of ever bigger government running our lives. Disease and accidents do not discriminate between the rich or poor. In a nation as rich as ours, nobody should die or get stuck in a permanent loop of poverty just because they cant afford medical treatment.
The two most common reasons why people dont retire earlier are: 1) Lack of money and 2) Uncertainty regarding health care access and costs. Soaring medical costs is also consistently a top-3 reason why Americans file for bankruptcy.
As an early retiree in 2012 with a full 30 years to go before being eligible for Medicare benefits, I was worried about health care. That is, until I did hours upon hours of research on the ACA and cheaper health care alternatives.
Now that Ive spent a good amount of time studying what healthcare.gov has to offer, Im no longe as worried about health care benefits. For those with low-enough income, Im thrilled for the potentially millions of other people who dont have health care or who have no desire to work into their 60s for health care benefits.
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Obamacare Subsidies Premium And Out
ObamaCare subsidies save you money on your premium and out-of-pocket expenses based on income. Subsidies are only available on plans sold on the .
Lets take a look at what subsidies are, how they work, and how you can apply for free or low-cost health insurance today.
The assistance types available under the Affordable Care Act include:
- Cost Sharing Reduction Subsidies that lower out-of-pocket costs. For those with incomes between 100% 250% FPL.
- Medicaid Expansion and CHIP free to low-cost comprehensive insurance for individuals and families. Between 0% 138% FPL although it can be lower in some states, see details below.
Lastly, before we get into more detail, the chart below offers a quick overview of ObamaCares cost assistance options by MAGI income for 2023.
|Types of Cost Assistance For 2023||Individual Annual Income|
|Subsidies for out-of-pocket costs||Between $13,590- $33,975||Between $27,750- $69,375|
NOTE: Medicaid/CHIP eligibility will be updated when the new Federal Poverty level data is published in early 2023.
TIP: Want to find out what you can save quickly, check out our Subsidy Calculator. You can also check out HSAs and Medical Deductions for other ways to save.
TIP: Below we feature general information on cost assistance. For the most recent cost assistance levels, see our page on cost assistance in 2021.
Q: How Does The Affordable Care Act Help Young Adults
Before the Affordable Care Act, many health plans and issuers could remove adult children from their parents’ coverage because of their age, whether or not they were a student or where they lived. The Affordable Care Act requires plans and issuers that offer dependent child coverage to make the coverage available until the adult child reaches the age of 26. Many parents and their children who worried about losing health coverage after they graduated from college no longer have to worry.
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Actions To Hinder Implementation
Under both the ACA and the AHCA, the CBO reported that the health exchange marketplaces would remain stable. But Republican politicians took a variety of steps to undermine it, creating uncertainty that adversely impacted enrollment and insurer participation while increasing premiums. Concern about the exchanges became another argument for reforms. Past and ongoing Republican attempts to weaken the law have included:
What Does Obamacare Cover
Under the ACA, insurance plans must allow parents to include their children on their plans up to age 26 and provide 10 essential services:
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Combining Coverage With Medicare
Itâs perfectly legal and beneficial to have both Medicare and Medicaid coverage at the same time if you’re eligible for both. In fact, thereâs even a name for people who have both: dual eligibles.
However, there’s usually no benefit to having both an Obamacare health insurance plan and Medicare.
It’s illegal for a private insurer to sell you an individual market plan after you’re enrolled in Medicare, but it’s legal to sell an individual market plan to someone who’s eligible for Medicare but not enrolled.
Also, an insurer can’t force you to give up an Obamacare plan you already have when you become eligible for Medicare.
In that case, though, you’ll lose any premium subsidy you’re receiving once you become eligible for Medicare , and there’s no coordination of benefits between Medicare and the individual market.
It’s generally advised that you drop individual coverage under Obamacare once you’re eligible for Medicare. This process is not automatic you have to initiate the cancellation of your Obamacare plan yourself and coordinate it with the start of your Medicare coverage.
This is true whether you sign up for original Medicare Parts A and B, or a Medicare Advantage plan.
Learn About The Childrens Health Insurance Program
If your income is too high for Medicaid, your child may still qualify for the Childrens Health Insurance Program . It covers medical and dental care for uninsured children and teens up to age 19.
Is my child eligible for CHIP?
CHIP qualifications are different in every state. In most cases, they depend on income.
How do I apply for CHIP benefits?
You have two ways to apply for CHIP:
- Fill out an application through the Health Insurance Marketplace.
What else do I need to know about CHIP?
- You can apply for and enroll in Medicaid or CHIP anytime during the year.
- Get information on other common types of health insurance, such as Medicare, and find help paying for medical bills.
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Review Of Proposed Health Insurance Rate Increases
Before the Affordable Care Act was implemented, some states tried to ensure that premiums on state-regulated health plans were actuarially justified, but others did very little and residents in some states were getting fleeced by some insurers.
Obamacare implemented a system that requires an actuarial review of any proposed rate increase of 10% or more , and details are published so consumers can see them.
Most states handle the rate review process themselves, but as of the 2023 plan year, the federal government conducts the rate review process in Oklahoma and Wyoming.