Pity the Invincibles

Key to the Obamacare plan is to get young healthy people who will not consume  much in the way of medical services to sign up. Since they won't use the system much, their premiums can go to pay for the older sicker people who will now be covered. The only problem is that early returns show that the so called "Invincibles" may not be signing up at the necessary rate. There's a good reason why that is happening. I put together a little chart that depicts a young single person working and living in New York City. Their gross salary is $50,000. Here's what happens when you start deducting all of the payroll and withholding taxes. After all of the necessary taxes are withheld, the monthly premium for the Obamacare Silver plan would represent 13% of the persons take home pay, and that does not include the out of pocket expenses which can be as high as $6350 a year. Why would a young healthy person want to spend over $4,000 a year for a service they won't use when the penalty for not complying is not even close to the cost. Guess who is going to pick up the tab if these folks don't sign up? I repeat, the website was the tip of the iceberg.

	Annual	Monthly
Gross	50,000.00	4,166.67
		-
FICA	3,100.00	258.33
Medicare	725.00	60.42
FIT	6,903.00	575.25
SIT	2,373.00	197.75
City	1,476.00	123.00
Total Tax	14,577.00	1,214.75
Net	35,423.00	2,951.92
Premium	4,624.00	385.33	13%