It sounds shocking, but it’s true: Millionaires can qualify for “low-income” subsidies under Obamacare. The law always provided for such a scenario, and an article Wednesday by CNBC confirmed that the theoretical has now become reality.
The relatively simple premise behind the story: Unlike many other means-tested benefits, Obamacare places no asset tests to qualify for its premium and cost-sharing subsidies for Exchange coverage. Individuals can hold millions of dollars in assets, but—provided they do not exceed the income limits prescribed in the law—still receive thousands of dollars in taxpayer-funded insurance subsidies.
In total, each millionaire could qualify for more than $10,000 in premium and cost-sharing subsidies per household.
As the article makes clear, that’s exactly what one Florida financial planner has arranged for her clients. The clients, all with assets over $1 million, have retired from work, but have not yet qualified for Medicare at age 65. Because they need to purchase insurance policies on the Exchange, the adviser has timed their asset withdrawals to maximize her clients’ ability to claim subsidies.
Just another way in which ♡bamaCare!!! bends the cost curve up for those who can least afford it.