Colorado: Subsidy 60 year old couple

This subsidy chart for a 60 year old Colorado 26 year old Colorado couple was created using the updated subsidy calculator on the Colorado Marketplace, Connect for Health Colorado. Boulder is fairly typical for the state and Edwards/the Vail Valley is indicative of the resort areas.


Subsidy graph 60 year old Colorado couple

As you can see thee are significant subsidies for all levels of MAGI. The subsidy cutoff level is a MAGI of $62,040, although the last value I plotted was $61.750. Using the latter as the cutoff level, an interesting question to ask is what is the penalty for making $1 more than the cutoff?

The annual penalty, measured in terms of lost subsidy, for making one additional dollar above the cutoff level is based on the subsidy level right below cutoff. This is shown below:

Boulder: Subsidy at cutoff – $586/mo

Edwards: Subsidy at cutoff – $1457

Annual penalty for making $1 above the cutoff level…

Boulder – $7032

Edwards – $17,484

Wow, it seems to me there will be lots of income management going on for older couples near the threshold. Talk about a disincentive to make more money. We’re from the government and we’re hear to help.


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