Skip to main content
No. of Recommendations: 1
If you are using ARP (American Rescue Plan) numbers, then the 400% of FPL is irrelavent and premiums are capped at 8.5% of your income. Which is why I want to see the math.

Between 300% and 400% FPL the percentage of income for insurance ranges from 6% to 8.5%.

FPL = 26200 (family of 4)

300% x 26200 = 78600
400% x 26200 = 104800

Let's look at the difference between MAGI = 104700 and MAGI = 104800

The percentage of income for insurance is a weighted average of 6% and 8.5%

MAGI = 104700, (26100 / 26200) x 8.5% + (100 / 26200) x 6% = 8.490%

8.49% x 104700 = 8889

MAGI = 104800

8.5% x 104800 = 8908

(8908 - 8889) / 100 = .19

The marginal rate is 19%. Make $100 extra dollars and insurance costs $19 more.

I had one of my numbers incorrect to arrive at 26% marginal rate.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.