Insurance thru affordable care act - subsidy

[lisaross]

Ok we have insurance thru aca since my husband lost his job. At the time we were not sure if he would have unemployment and I didn't realize I would be able to get more hours. So we got a big subsidy and now I fear we will have to pay it all back.... What if I don't have the money to pay it back -

Anyone in this position

 

[supersnoop]

Ok we have insurance thru aca since my husband lost his job. At the time we were not sure if he would have unemployment and I didn't realize I would be able to get more hours. So we got a big subsidy and now I fear we will have to pay it all back.... What if I don't have the money to pay it back - Anyone in this position

Funny thing about ACA subsidies; while you'll owe the money, there is no enforcement available to collect it. The IRS isn't allowed to come after you for it. It's been a while since I read the regulations, so you might need to search some more, but it's a strange provision of the law that seems like a glaring loophole.

 

[tvguy]

ACA clearly has had bugs that need to be worked out, including your situation. What little knowledge I have of the subsidies tells me you really must have been in a tight money situation. We have done stories on people with amazing low incomes that still make too much for subsidies.

 

[lisaross]

It is based on earnings in the current year that u smoke or think u will make. I got it after my husband list his job and I worked parttime. So I now work more hours and he has been doing some 1099 work - they do not take into account any savings/retirement accounts

 

[3princes+1princess]

I worry about this too. They took into consideration our last year taxes. This year, we are making a bit more (not that after taxes you'd really notice). We only took about half the subsidy, because I knew last year was a really bad year.

How do they get the money? Do they take it from the taxes you pay into this year? The whole thing is so flawed and hard to judge. We got a good basic insurance that is affordable, but the deductible is not and now we have already received notice that is is going to go up about 25% next year. Its like they suck you in and you're stuck.

I'm sure I will be looking for a new plan this year, because the 'wise and knowledgeable' marketplace manager lied to me about this one. And big lies too. While I am happy there is progress (no pre-existing conditions and other things), the whole getting and maintaining insurance is awful.

Maybe we should start having no taxes taken out so they have nothing to take from us in the end. Start saving it ourselves. We have never made as much as we are now, but it seems like the whole check is taxes.

 

[lisaross]

I'm not really sure how they will track everyone. For 2015 u have to register in October of 14... So again they r basing salary on 2013. I guess we will wait and see.

 

[ilovemk76]

I'm not really sure how they will track everyone. For 2015 u have to register in October of 14... So again they r basing salary on 2013. I guess we will wait and see.

Who knows how they will handle this situation. I would save the subsidy just on case I had to pay it back.

 

[lisaross]

i am now stressing more for the upcoming year...godwilling my husband finds a job with benefits BUT if now pretty scary. -- how could we afford 500 - 700 a month just crazy for the two of us...

 

[lisaross]

i would be interested in doing the catastrophic health plan for us, but seems you have to be under 30 years old..

 

[AnAmericanInDisney]

I worry about this too. They took into consideration our last year taxes. This year, we are making a bit more (not that after taxes you'd really notice). We only took about half the subsidy, because I knew last year was a really bad year.

How do they get the money? Do they take it from the taxes you pay into this year? The whole thing is so flawed and hard to judge. We got a good basic insurance that is affordable, but the deductible is not and now we have already received notice that is is going to go up about 25% next year. Its like they suck you in and you're stuck.

I'm sure I will be looking for a new plan this year, because the 'wise and knowledgeable' marketplace manager lied to me about this one. And big lies too. While I am happy there is progress (no pre-existing conditions and other things), the whole getting and maintaining insurance is awful.

Maybe we should start having no taxes taken out so they have nothing to take from us in the end. Start saving it ourselves. We have never made as much as we are now, but it seems like the whole check is taxes.

Marketplace navigators are required to be unbiased, but there are definitely people not in these roles who are just selling what they can get away with. Call this number 1-800-318-2596 if you had problems with a navigator. Maybe they can tell you who to complain to. Sorry if you got roped into a crappy policy. Lots of unscrupulous medical insurance and medicare supplemental insurance sales people out there these days.

 

[ilovemk76]

i am now stressing more for the upcoming year...godwilling my husband finds a job with benefits BUT if now pretty scary. -- how could we afford 500 - 700 a month just crazy for the two of us...

I would not wait for DH to get a job with benefits. I would be applying for jobs with benefits too.

DH and I pay more than 500-700/month.

 

[havaneselover]

Apparently as your income changes you are supposed to report the change so the subsidy can be readjusted.

http://finance.yahoo.com/news/tax-refunds-may-hit-due-084734465.html

This seems like a recipe for a disaster.

 

[lisaross]

problem is, he is not doing steady work...SO its 1099 not sure how much will get paid in 2014 - some payment might roll over to 2015...

I am thinking lots of people will have to pay back

 

[lisaross]

The thing is - i just became certified to become a paraprofessional in the school district - i have to sub 20's days before i am even able to become permanent -- so with my job my boss is very flexible so i can do both at the same time - if i was to get hired at a permanent para it offers FANTASTIC beneifts - but i have to get my foot in the door to schools by subbing.

I would not wait for DH to get a job with benefits. I would be applying for jobs with benefits too.

DH and I pay more than 500-700/month.

 

[supersnoop]

Who knows how they will handle this situation. I would save the subsidy just on case I had to pay it back.

The entire point of the subsidy is because the person cannot afford it. How are they supposed to save it?

 

[havaneselover]

The entire point of the subsidy is because the person cannot afford it. How are they supposed to save it?

Well if income goes up either set more aside or report the increase so the subsidy declines accordingly.

 

[MOpGrad2013]

I just came across this article. I don't know if it will be of any use to anyone, but this thread and this article opened my eyes to what could complicate life even more.

http://finance.yahoo.com/news/tax-refunds-may-hit-due-084734465.html

We always use our refunds to pay off bills and a little bit of fun money. How could taking a refund back from those who can't afford insurance premiums help the people? And I don't know how reputable the writer is. I usually try to research it more, but there are some links in the article.

 

[Marionnette]

I just came across this article. I don't know if it will be of any use to anyone, but this thread and this article opened my eyes to what could complicate life even more.

http://finance.yahoo.com/news/tax-refunds-may-hit-due-084734465.html

We always use our refunds to pay off bills and a little bit of fun money. How could taking a refund back from those who can't afford insurance premiums help the people? And I don't know how reputable the writer is. I usually try to research it more, but there are some links in the article.

From the article that you linked:

Here's why: If your income for 2014 is going to be higher than you estimated when you applied for health insurance, then complex connections between the health law and taxes can reduce or even eliminate your tax refund next year.

So, it looks like you would only have your refund garnished if you underestimated your income and did not qualify for the full subsidy that you received. It's not "taking a refund back from those who can't afford insurance premiums". It's more along the lines of recovering a subsidy that was paid out in excess of what the taxpayer was entitled to receive during the year that was covered.

 

[havaneselover]

I just came across this article. I don't know if it will be of any use to anyone, but this thread and this article opened my eyes to what could complicate life even more. http://finance.yahoo.com/news/tax-refunds-may-hit-due-084734465.html We always use our refunds to pay off bills and a little bit of fun money. How could taking a refund back from those who can't afford insurance premiums help the people? And I don't know how reputable the writer is. I usually try to research it more, but there are some links in the article.

It's taking away an overpayment. I don't see anything remotely wrong. ACA is a big wealth transfer. There's little fair about it.

 

[MOpGrad2013]

From the article that you linked:

​

So, it looks like you would only have your refund garnished if you underestimated your income and did not qualify for the full subsidy that you received. It's not "taking a refund back from those who can't afford insurance premiums". It's more along the lines of recovering a subsidy that was paid out in excess of what the taxpayer was entitled to receive during the year that was covered.

It's taking away an overpayment. I don't see anything remotely wrong. ACA is a big wealth transfer. There's little fair about it.

Yes to both..that's how I read it. We didn't have to rely on ACA and subsidies (military retirement covers our insurance), but I know that the majority of the refunds we have received is EITC (Earned Income Tax Credit). So that would again, just recouping the subsidies given to those who didn't make enough money.

For the PP, if your income has gone up, you may want to go ahead and change it up.

My comment above was how do the poorer ever get a chance to pay it off? But, don't answer that--it would be off topic and could turn political and ugly.