For a family that is right on the median income, $72,230, the annual premium would still be $8,088, but the taxpayer-paid subsidy would fall to $1,226, meaning the family would pay, with its own money, $6,862 for the coverage. Is that a better deal than they have now? Maybe yes, and maybe no. In any event, they won’t save as much as the president promised.
Finally, choose a higher income level, but one at which there are still a lot of people. For a family of four with an income of $85,000, the premium remains $8,088 but the subsidy shrinks to just $13 a year, meaning the family will pay, with its own money, $8,075 for coverage. So that family will technically receive help with its health care costs — but not really.
For families above that level, and there are a lot of them, the subsidy will be $0. The bottom line is, when — or if — large numbers of people actually begin purchasing coverage on the Obamacare exchanges, many will find the much-touted subsidies aren’t for them.