For example, a family of four, in which both parents were 56 years old, would hit the 400-percent of FPL threshold at $94,200. Their annual premium for a “Silver” plan would be $17,915, according to the Kaiser Family Foundation subsidy calculator. If they kept their income at $94,200 or less, they would need to pay $8,949 per year for their insurance and the government would pay an $8,966 subsidy to their insurance provider.
But if this family increased its annual income—to $94,201—they would become ineligible for the subsidy, lose the 9.5 percent-of-income cap on the premiums they are required to pay, and would need to pay the entire $17,915 cost of their health insurance plan themselves. Thus, the $1 increase in their income would cost them an $8,966 increase in their Obamacare insurance premiums.
It could be worse.
If the stress of paying an additional $8,966 for health insurance as a result of their $1 increase in income caused the mom and dad in this family to start smoking, insurance companies would be allowed to increase their premium as a penalty for their tobacco use.