Friday, May 9, 2014

ACA/Obamacare and the Twin Subsidy “Silver” Plan

“May 02--Some 8 million people, including 151,352 Tennesseans, have enrolled in insurance plans through the Affordable Care Act marketplace, the government said Thursday.

That's just shy of half of the 305,628 Tennesseans the U.S. Department of Health and Human Services determined are eligible to enroll -- 169,740 of them with financial assistance

As in the U.S. overall, females made up slightly more than half of Tennessee enrollees, 55 percent. All but 20 percent of Tennesseans who enrolled were eligible for financial assistance to pay for their insurance plans. Most enrollees -- 72 percent -- opted for the midlevel "silver" coverage, with 18 percent getting a more basic "bronze" plan, and 6 percent and 3 percent, respectively, buying "gold" and "platinum" plans. One percent of Tennesseans chose catastrophic coverage available to certain people.” (1)

Upon further review, one needs to take note of the trend/pattern regarding the inordinate percentage applying for the “silver” coverage. The silver plan affords twin subsidies for those eligible. Twin subsidies? How so?

Depending upon income, number of proposed insured(s) applying regarding the policy, ages of the proposed insured and dependents in the household one can receive a taxpayer subsidy against total premium and a reduction in major medical deductible, reduction in the maximum out-of-pocket under major medical co-insurance and a reduction in doctor office co-pay.

The “silver” plan, via word of mouth, became very, very popular among ACA/Obamacare applicants. Stated alternatively, at the point sale, applicants had already predetermined “silver” as their plan choice by word of mouth referral from prior applicants. Applicants were well aware of the possibility of the twin subsidy regarding the “silver plan” and were seeking the twin subsidy.


(1) ACA enrollment ends with 151,000 Tennesseans signed up, 05/01/2014,


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