obamacare - advance premium tax credit --> premium payment

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
datamonkee
Posts: 59
Joined: Wed Sep 07, 2011 10:40 pm

obamacare - advance premium tax credit --> premium payment

Post by datamonkee » Sat Nov 26, 2016 12:00 am

I just signed up for obamacare. I had the premium tax credit be applied to my premiums (lowering them). so, the monthly premiums were supposed to be ~$250, but due to my premium tax credit being >$250, my monthly premiums are $0.

Question: does this mean the government is automatically handling the payment of my premiums to my insurance company, and I don't ever have to worry about payment?

I ask this because when I went to the insurance company's site (community health) to pay my $0 monthly premium, i got an error message saying that the amount ($0) I wanted to charge to my credit card was invalid.

rrppve
Posts: 795
Joined: Sun Aug 12, 2012 12:35 am

Re: obamacare - advance premium tax credit --> premium payment

Post by rrppve » Sat Nov 26, 2016 12:12 am

Yes, it looks that way. When you file your 2016 tax return, if your income turns out to be higher than you projected, and the APTC is thus lower, you will have to pay the difference with your taxes.

datamonkee
Posts: 59
Joined: Wed Sep 07, 2011 10:40 pm

Re: obamacare - advance premium tax credit --> premium payment

Post by datamonkee » Sun Nov 27, 2016 11:11 am

thanks!

User avatar
dm200
Posts: 13190
Joined: Mon Feb 26, 2007 2:21 pm
Location: Washington DC area

Re: obamacare - advance premium tax credit --> premium payment

Post by dm200 » Sun Nov 27, 2016 11:23 am

datamonkee wrote:I just signed up for obamacare. I had the premium tax credit be applied to my premiums (lowering them). so, the monthly premiums were supposed to be ~$250, but due to my premium tax credit being >$250, my monthly premiums are $0.
Question: does this mean the government is automatically handling the payment of my premiums to my insurance company, and I don't ever have to worry about payment?
I ask this because when I went to the insurance company's site (community health) to pay my $0 monthly premium, i got an error message saying that the amount ($0) I wanted to charge to my credit card was invalid.


Yes - it should be taken care of, BUT (based on my wife's experience a few years ago), I suggest you make sure (with your chosen insurance) that everyihing is OK and nothing slips through the cracks.

datamonkee
Posts: 59
Joined: Wed Sep 07, 2011 10:40 pm

Re: obamacare - advance premium tax credit --> premium payment

Post by datamonkee » Sun Nov 27, 2016 1:28 pm

thanks. that's a good idea. i will do that.

Post Reply