How reform affects you
What you need to know about how your family will benefit, what you'll really pay, whether you'll get better or worse care, and what could go wrong from here.
A well-off couple with benefits
Income: $275,000, plus $25,000 in investment income
Work status: He works for a large company.
Insurance: Employer group plan
What's changing:
Within a year:
- Insurance costs and coverage remain largely the same.
- Small exception: In 2011, flexible spending accounts can no longer be tapped to pay for nonprescription medicine.
- Daughter can stay on Mom and Dad's plan until she turns 26 or finds a job that offers health benefits.
- Contributions to his FSA are capped at $2,500, vs. the typical $4,000 or $5,000 now, erasing about $600 to $1,000 in potential tax savings.
- Top earners like this couple pay higher taxes on wages and investment income over $250,000.
- They gain some protection if the husband, who has early signs of heart disease, loses his job or retires early. A family policy on the state exchange, unlike today, must cover his pre-existing condition at no extra cost.
- Since their group plan is an especially rich policy with annual premiums of more than $27,500 (both the employee and the employer share), they're likely to see a reduction in benefits because of a new tax on these plans.
NEXT: A retired couple
