ACA subsidy cliff now going away! Yay!

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LadyGeek
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Re: ACA subsidy cliff now going away! Yay!

Post by LadyGeek »

I merged aprilcpa's thread into the ongoing discussion.
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Rdytoretire
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Re: ACA subsidy cliff now going away! Yay!

Post by Rdytoretire »

Just went to Healthcare.gov and updated from my Bronze plan to a Silver plan at a lower cost due to additional subsidy. Looks like my Bronze plan will expire 4/30 and the Silver will be effective 5/1. I'm not sure if others are aware that they may need to do this to benefit from lower premiums thanks to the American Rescue Plan.
theplayer11
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Re: ACA subsidy cliff now going away! Yay!

Post by theplayer11 »

looks like my state won't allow plan changes. With a much higher tax credit, only makes sense to get a better plan, but not allowed.
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Re: ACA subsidy cliff now going away! Yay!

Post by fsrph »

opus360 wrote: Sat Mar 20, 2021 7:53 pm
The COVID-19 relief law makes special considerations for people approved to receive or receiving unemployment compensation at any point in 2021.
In the quote above "receiving unemployment compensation" is easy to understand. But does anyone know how to interpret the term "approved to receive". I've been looking all over for an answer to this. Thanks.

Francis
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Random Poster
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Re: ACA subsidy cliff now going away! Yay!

Post by Random Poster »

fsrph wrote: Wed Apr 07, 2021 7:49 am
opus360 wrote: Sat Mar 20, 2021 7:53 pm
The COVID-19 relief law makes special considerations for people approved to receive or receiving unemployment compensation at any point in 2021.
In the quote above "receiving unemployment compensation" is easy to understand. But does anyone know how to interpret the term "approved to receive". I've been looking all over for an answer to this. Thanks.

Francis
You can apply to receive unemployment and be approved for it, but never file a weekly (or biweekly) request for payment to actually receive unemployment pay. As in, applying for unemployment and being declared eligible for it from the state is a separate process from actually requesting and receiving unemployment payments.

That’s how I interpret it anyway.
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Re: ACA subsidy cliff now going away! Yay!

Post by fsrph »

Random Poster wrote: Wed Apr 07, 2021 11:56 am
fsrph wrote: Wed Apr 07, 2021 7:49 am
opus360 wrote: Sat Mar 20, 2021 7:53 pm
The COVID-19 relief law makes special considerations for people approved to receive or receiving unemployment compensation at any point in 2021.
In the quote above "receiving unemployment compensation" is easy to understand. But does anyone know how to interpret the term "approved to receive". I've been looking all over for an answer to this. Thanks.

Francis
You can apply to receive unemployment and be approved for it, but never file a weekly (or biweekly) request for payment to actually receive unemployment pay. As in, applying for unemployment and being declared eligible for it from the state is a separate process from actually requesting and receiving unemployment payments.

That’s how I interpret it anyway.
Thanks R.P., that makes sense.

Francis
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Watty
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Important: Check your ACA plan for a possible reduction.

Post by Watty »

[Thread merged into here --admin LadyGeek]

I get a significant subsidy on my ACA healthcare plan and I was just able to get it recalculated with the new law changes to significantly increase the subsidy so I will be paying a lot less out of pocket each month.

On Wednesday I got a short email from Healthcare.Gov that said;
Thanks to the new COVID relief law, more people than ever before will qualify for help paying for health coverage, even those who weren’t eligible in the past.

On average, monthly premiums for coverage through HealthCare.gov will be lower by $50 per person per month.

To receive these additional savings, come back to HealthCare.gov and update your 2021 application to see what savings you qualify for now. You’ll then need to reselect your current plan so that any new savings can take effect for the remainder of the year.

Remember: Come back to HealthCare.gov as soon as you can, submit your application again, and reselect your plan so that you can save on your coverage starting May 1.
I went to the healthcare.gov web site and logged in. (not using the link in the email)

It had these instruction in a big red box.
Need updated savings?

Review your application now to get updated savings. To do this:

Select your 2021 application, then select “Report a life change”.

Step through your application, and make any necessary updates.

Submit your application.

Review your updated eligibility results with new savings.

Continue to enrollment to get the updated savings. You can keep your current plan or select a new one.
I went through these steps which was about 20 screens with my old application already filled out. There were just a few places that I had to check boxes to acknowledge things or to enter my name. Other than the few checkboxes to acknowledge things I did not change any other information.

At the end I reselected my current plan and my subsidy had increased about $160 a month for one person. :beer

I suspect that if I had not gone through this process I would still have gotten the savings next year when I file my tax return but I am not sure of that.

If you did not qualify for a subsidy before it might be good to look at it again to see if you will qualify for it now.
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Re: Important: Check your ACA plan for a possible reduction.

Post by Random Poster »

Thanks for the information.

I updated my plan at the beginning of the month and my subsidy actually decreased, apparently because of my unemployment income.

So now I’m waiting for the “those on unemployment get free health insurance” part of the recent law to get implemented.
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Re: ACA subsidy cliff now going away! Yay!

Post by LadyGeek »

I merged Watty's thread into the ongoing discussion.

(Thanks to the member who reported the post and supplied the link.)
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Re: ACA subsidy cliff now going away! Yay!

Post by iamblessed »

I suspect that if I had not gone through this process I would still have gotten the savings next year when I file my tax return but I am not sure of that.

That's what I am thinking but do not know if it is right?
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Re: ACA subsidy cliff now going away! Yay!

Post by michaeljc70 »

Since I have little idea what our income will be this year (spouse unemployed, my income can be controlled via investments/withdrawals) I thought I would jump start the increase in premium tax credit (due to being unemployed in 2021) by updating our income. The federal poverty level is ~$17k for two people. I put our estimated income in as $30k. I got an eligibility letter saying they are passing it on to my state's Medicaid office due to $1033/mo in income. Well, that is not what I put as our income. I tried this twice. We are not eligible for Medicaid at $30k income in my state. I am not sure how it is calculating income and how/if I should do something about this or wait and see what happens.
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Re: ACA subsidy cliff now going away! Yay!

Post by Ron Ronnerson »

iamblessed wrote: Sat Apr 17, 2021 2:50 pm I suspect that if I had not gone through this process I would still have gotten the savings next year when I file my tax return but I am not sure of that.

That's what I am thinking but do not know if it is right?
I believe that is how it works on the federal exchange. I’m on Covered California and here the savings are set to be applied automatically beginning next month. Regardless of that, it is likely a good idea for people to take a look at their options, though I am not sure if all states are allowing people to change their plans at this time.

Our family is made up of two people in their mid-40s and a kid. We are currently on a silver plan with a reported AGI of $65k. We’ve been paying about $120/month and getting subsidies (primarily from federal but also a small amount from the state of California) totaling $1300/month. After the new legislation, we can now get the same silver plan for $3/month and the entire subsidy is provided by the federal government (no more state subsidy). This is what would happen if we take no action.

However, we plan to switch to a gold plan. With an income of $65k, our new subsidy amount would exceed the cost of our silver plan. If we switch to a gold plan, we can continue to pay roughly $120/month but get we’d be getting a gold plan instead of a silver, meaning not having any deductibles any longer.

Also, for each $1,000 of income that we reduce below our stated AGI of $65k, we get roughly an additional $170 in premium tax credit for the year. We’re in the 12% federal bracket and 2% state bracket. All combined, our marginal tax bracket becomes 31% (17+12+2). This is high enough that instead of doing things like converting traditional accounts to Roth, we'd instead prefer to go the other direction and fund traditional accounts in order to save 31% in the present. The premium tax credit basically turns our 12% federal bracket into a 29% bracket when our AGI is in the $60k-$70k range. This is a little bit simplified because we'd also lose $400 in Saver's Credit if income is above $66k. Due primarily to the loss of the various credits, we'd basically pay 70% in taxes on an income of $66k vs. $65k.

Anyhow, I found playing with the calculator to be quite useful. I’m going to try to get our AGI down to about $60k for the year so that a gold plan costs us about $50/month and our subsidy increases to about $1530/month.
cnc449
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Re: ACA subsidy cliff now going away! Yay!

Post by cnc449 »

Since the ACA cliff is more like a hill this year, what strategies are folks using to take advantage of this change?
We are considering a Roth conversion up to a certain income limit.
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Re: ACA subsidy cliff now going away! Yay!

Post by mkc »

cnc449 wrote: Wed Apr 21, 2021 8:16 pm Since the ACA cliff is more like a hill this year, what strategies are folks using to take advantage of this change?
We are considering a Roth conversion up to a certain income limit.
We upgraded (yes, it actually had higher initial premiums) to a HDHP HSA bronze plan from a seriously crappy bronze plan, both of which ended up a 0 cost to us. We will contribute monthly to our HSAs, watching at this fall's open enrollment to see if we can take advantage of the "last month" rule (and do an HDHP/HSA plan for next year) to fully fund the HSAs for 2021. Then we are taking the monthly premium savings and paying down the mortgage even faster.
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Re: ACA subsidy cliff now going away! Yay!

Post by Cpadave »

Just wanted to confirm my understanding of how it works. If our modified agi is 100k in 2021, our cost for silver plan is limited to $8,500 a year. However if we choose the bronze plan that costs $10,000 less in annual premium, our net cost for the bronze plan would be 0.
Thanks
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Re: ACA subsidy cliff now going away! Yay!

Post by cryingshame »

cnc449 wrote: Wed Apr 21, 2021 8:16 pm Since the ACA cliff is more like a hill this year, what strategies are folks using to take advantage of this change?
We are considering a Roth conversion up to a certain income limit.
I had mentioned this in another post...but we have some mutual funds in taxable with high er's and more risk(mistakes made a long time ago) that were going to sell some shares over the next two years. This will most likely put us over the cliff some but we feel bigger picture will save more in the long run.

Hopefully, the more I'm on boglehead's the more I realize there is a pro and con to everything. :D
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Re: ACA subsidy cliff now going away! Yay!

Post by mkc »

Cpadave wrote: Sat Apr 24, 2021 10:23 am Just wanted to confirm my understanding of how it works. If our modified agi is 100k in 2021, our cost for silver plan is limited to $8,500 a year. However if we choose the bronze plan that costs $10,000 less in annual premium, our net cost for the bronze plan would be 0.
Thanks
That is how it worked for us, but there's a bit more to it.

MFJ MAGI for $100K, max cost for SLCSP (second lowest cost silver plan) is $8500.

Now, subtract the $8500 from the full SLCSP premium cost for your situation (in our case it was $33K). That leaves your your premium credit. So in this example that's $24.5K.

You can apply the premium credit to any plan, Bronze through Gold. If the bronze plans all cost $24.5K per year or less, your cost is 0. You do not get the difference. If your gold plan costs $34.5K per year, your cost is $10K per year.
standard7
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Re: ACA subsidy cliff now going away! Yay!

Post by standard7 »

I have a couple questions relating to applying mid year after realizing that it may be possible to dip below the ACA MAGI threshold by delaying Roth conversions until post Medicare age:

Because it's a guess right now for the 2021 total income, can you delay applying, reconcile and receive a tax credit at the end of the year?

Does anyone wait until it's time to file tax returns or is the reduced premium always the best way to go even if there needs to be an adjustment at the end of the year?

Does an application need to be submitted and approved within the calendar year even if you delay and file at tax time?

If you do apply and start receiving a subsidized premium, how are the previous months handled? Is this also handled with the end of year tax returns?

thanks in advance.
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Re: ACA subsidy cliff now going away! Yay!

Post by marcopolo »

standard7 wrote: Fri May 14, 2021 2:48 pm I have a couple questions relating to applying mid year after realizing that it may be possible to dip below the ACA MAGI threshold by delaying Roth conversions until post Medicare age:

Because it's a guess right now for the 2021 total income, can you delay applying, reconcile and receive a tax credit at the end of the year?

Does anyone wait until it's time to file tax returns or is the reduced premium always the best way to go even if there needs to be an adjustment at the end of the year?

Does an application need to be submitted and approved within the calendar year even if you delay and file at tax time?

If you do apply and start receiving a subsidized premium, how are the previous months handled? Is this also handled with the end of year tax returns?

thanks in advance.
How would you get the insurance id you don't apply?

The "subsidies" are actually just a tax credit, with annoption to receive them in advance.

If you want to wait until tax filing time to claim tyhe rax credits, there is an option when you sign up to not receive the advance payments. If you receive the advance payments on them, you will have to reconcile them at tax filing time.

Either way, you still have to do an application to get the insurance in the first place, regardless of how you take your tax credits.
Once in a while you get shown the light, in the strangest of places if you look at it right.
standard7
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Re: ACA subsidy cliff now going away! Yay!

Post by standard7 »

“ How would you get the insurance id you don't apply?”

Thanks for the reply, I assumed that I have an ID since I’ve been purchasing on the marketplace each year, but have always bypassed the income questions since it wasn’t relevant. Or, is the ID that you mentioned only available when income is calculated?
MikeG62
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Re: ACA subsidy cliff now going away! Yay!

Post by MikeG62 »

standard7 wrote: Fri May 14, 2021 3:25 pm “ How would you get the insurance id you don't apply?”

Thanks for the reply, I assumed that I have an ID since I’ve been purchasing on the marketplace each year, but have always bypassed the income questions since it wasn’t relevant. Or, is the ID that you mentioned only available when income is calculated?
Why not log into Healthcare.gov and update your income (or put it in) so you get a portion of the advanced tax credit as you go. Maybe put in enough income so you get very little advanced tax credit each month and if your income comes on below that level such that you could have gotten more you’ll get that when you file your 2021 return.

This would mitigate the risk of your having to repay some of the credit if your income comes in higher (reading between the lines of your post it seems that may be a concern).
Last edited by MikeG62 on Fri May 14, 2021 4:20 pm, edited 1 time in total.
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marcopolo
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Re: ACA subsidy cliff now going away! Yay!

Post by marcopolo »

standard7 wrote: Fri May 14, 2021 3:25 pm “ How would you get the insurance id you don't apply?”

Thanks for the reply, I assumed that I have an ID since I’ve been purchasing on the marketplace each year, but have always bypassed the income questions since it wasn’t relevant. Or, is the ID that you mentioned only available when income is calculated?
Sorry. That should have read "If you don't apply".
I misunderstood your question, since you were asking about "applying", I assumed you meant applying for coverage.

If I understand it correctly, you currently have coverage through the market place, but never filled out the income sections.

In that case, you have two choices. You can go in and update your application, and you will start getting a lower bill next month, and have to reconcile tax credits on your taxes, or you acn do nothing now, and reconcile your tax credits on your taxes. The only real difference is if you want to make a interest free loan to the IRS. Weigh that against having to redo your application.
Once in a while you get shown the light, in the strangest of places if you look at it right.
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Re: ACA subsidy cliff now going away! Yay!

Post by PaunchyPirate »

standard7 wrote: Fri May 14, 2021 3:25 pm “ How would you get the insurance id you don't apply?”

Thanks for the reply, I assumed that I have an ID since I’ve been purchasing on the marketplace each year, but have always bypassed the income questions since it wasn’t relevant. Or, is the ID that you mentioned only available when income is calculated?
I believe the “id” you are referring to is a typo for the word “if”.

The way it works is:

1. You decide you want to buy health insurance on the ACA exchange.
2. If you want insurance to start on June 1st, you fill out an application on the ACA exchange website in May. The earlier, the better.
3. You provide an estimate of your MAGI income for the year as well as zip code, age, etc.
4. The website calculates the subsidy that you qualify for and presents you with health plans for your consideration that are available in your zip code.
5. You pick whichever plan you want to.
6. You will be asked how much, if any, of the available subsidy that you wish to apply to your monthly premiums.
7. You submit your application and it hopefully will be approved, but they may ask you to submit supporting income documents and such.
8. You’ll be advised how to pay your first month premium to your chosen insurance company. If you took a subsidy, the premium due should reflect it.
9. In January of the next year, the ACA exchange will send you a 1095-A form to use when filing your federal taxes.
10. The 1095-A articulates the subsidy you qualified for and how much of it the you actually took in advance.
11. The tax software you use or your tax preparer uses the 1095 info and your actual income to determine whether you have to pay some of the subsidy back or if you get some of the subsidy credited to you as a tax credit.
12. If you took no subsidy as a monthly premium reduction, and you qualify for one, you will be credited the full subsidy on you tax form. It could be used to reduce your overall taxes due or it could just be refunded to you, depending on the rest of your tax situation.
marcopolo
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Re: ACA subsidy cliff now going away! Yay!

Post by marcopolo »

PaunchyPirate wrote: Fri May 14, 2021 3:41 pm
standard7 wrote: Fri May 14, 2021 3:25 pm “ How would you get the insurance id you don't apply?”

Thanks for the reply, I assumed that I have an ID since I’ve been purchasing on the marketplace each year, but have always bypassed the income questions since it wasn’t relevant. Or, is the ID that you mentioned only available when income is calculated?
I believe the “id” you are referring to is a typo for the word “if”.

The way it works is:

1. You decide you want to buy health insurance on the ACA exchange.
2. If you want insurance to start on June 1st, you fill out an application on the ACA exchange website in May. The earlier, the better.
3. You provide an estimate of your MAGI income for the year as well as zip code, age, etc.
4. The website calculates the subsidy that you qualify for and presents you with health plans for your consideration that are available in your zip code.
5. You pick whichever plan you want to.
6. You will be asked how much, if any, of the available subsidy that you wish to apply to your monthly premiums.
7. You submit your application and it hopefully will be approved, but they may ask you to submit supporting income documents and such.
8. You’ll be advised how to pay your first month premium to your chosen insurance company. If you took a subsidy, the premium due should reflect it.
9. In January of the next year, the ACA exchange will send you a 1095-A form to use when filing your federal taxes.
10. The 1095-A articulates the subsidy you qualified for and how much of it the you actually took in advance.
11. The tax software you use or your tax preparer uses the 1095 info and your actual income to determine whether you have to pay some of the subsidy back or if you get some of the subsidy credited to you as a tax credit.
12. If you took no subsidy as a monthly premium reduction, and you qualify for one, you will be credited the full subsidy on you tax form. It could be used to reduce your overall taxes due or it could just be refunded to you, depending on the rest of your tax situation.
Yes. That was a typo on my part.

Great explanation on how the process works!

One minor clarification on item #2 above.
If you want the coverage to start first of the month, you have to have a valid application accepted by the 15th of the prior month. If you apply after the 15th, the coverage starts the first of the month after the next.
Once in a while you get shown the light, in the strangest of places if you look at it right.
standard7
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Re: ACA subsidy cliff now going away! Yay!

Post by standard7 »

Thank you MarcoPolo and PaunchyPirate

I’m glad I misread the typo, the additional information was also very helpful.

The contributors on this forum are outstanding!

Many thanks.
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Update your Marketplace.Gov may result in low or Zero bill

Post by susa »

[Post merged into here --admin LadyGeek]

Likely everyone knows this but we have been doing friends and relatives Marketplace.Gov updates due to the open enrollment period and everyone, yes EVERYONE have received significant monthly premium reductions or even premium to ZERO monthly premium changes after the update.

Even if NOTHING has changed, you may be surprised on how your existing ACA linked Silver etc plan monthly bill will drop. Several friends had monthly premium drops of hundred or more dollars effective June 1, 2021
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Re: ACA subsidy cliff now going away! Yay!

Post by LadyGeek »

^^^ I merged susa's post into the ongoing discussion.

(Thanks to the member who reported the post and provided a link to this thread.)
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anoop
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Re: Update your Marketplace.Gov may result in low or Zero bill

Post by anoop »

susa wrote: Wed May 26, 2021 9:45 am Even if NOTHING has changed, you may be surprised on how your existing ACA linked Silver etc plan monthly bill will drop. Several friends had monthly premium drops of hundred or more dollars effective June 1, 2021
What is the catch? There is always one.
michaeljc70
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Re: Update your Marketplace.Gov may result in low or Zero bill

Post by michaeljc70 »

anoop wrote: Wed May 26, 2021 10:40 am
susa wrote: Wed May 26, 2021 9:45 am Even if NOTHING has changed, you may be surprised on how your existing ACA linked Silver etc plan monthly bill will drop. Several friends had monthly premium drops of hundred or more dollars effective June 1, 2021
What is the catch? There is always one.
I know the poster was referring to the individuals, but something changed....the law due to the American Rescue Plan.
michaeljc70
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Re: ACA subsidy cliff now going away! Yay!

Post by michaeljc70 »

I updated my application and we are eligible for an extra $300/mo subsidy. I did this around 2 weeks ago. However, even for the upcoming June bill, I don't see that being reflected. Do I have to reselect a plan (even if keeping the same one)? Or does this just take longer than a couple of weeks to be reflected?
nalor511
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Re: ACA subsidy cliff now going away! Yay!

Post by nalor511 »

One gotcha for people who do not take the PTC in advance each month - I just got a letter from my state's exchange that they helpfully updated my account for me, to give me the full PTC in advance, after the subsidy updates. :oops:

So I had to go back in and set it to $0 again, but I'll get it in advance for 1 month (nothing I can do about that). Just a heads-up in case anyone else is in that boat, go check your APTC settings.
nalor511
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Re: ACA subsidy cliff now going away! Yay!

Post by nalor511 »

michaeljc70 wrote: Tue Jun 08, 2021 1:52 pm I updated my application and we are eligible for an extra $300/mo subsidy. I did this around 2 weeks ago. However, even for the upcoming June bill, I don't see that being reflected. Do I have to reselect a plan (even if keeping the same one)? Or does this just take longer than a couple of weeks to be reflected?
If you make a change on Month A before the 15th, changes take effect month B. If you make changes Month A after the 15th, changes take affect month C
michaeljc70
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Re: ACA subsidy cliff now going away! Yay!

Post by michaeljc70 »

nalor511 wrote: Tue Jun 08, 2021 2:07 pm
michaeljc70 wrote: Tue Jun 08, 2021 1:52 pm I updated my application and we are eligible for an extra $300/mo subsidy. I did this around 2 weeks ago. However, even for the upcoming June bill, I don't see that being reflected. Do I have to reselect a plan (even if keeping the same one)? Or does this just take longer than a couple of weeks to be reflected?
If you make a change on Month A before the 15th, changes take effect month B. If you make changes Month A after the 15th, changes take affect month C
Okay. Thanks. I made the change May 26th so I guess it will be reflected for July which is paid in June, but it isn't showing yet on my insurers website.
peke9898
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Re: ACA subsidy cliff now going away! Yay!

Post by peke9898 »

marcopolo wrote: Fri May 14, 2021 3:51 pm
PaunchyPirate wrote: Fri May 14, 2021 3:41 pm
standard7 wrote: Fri May 14, 2021 3:25 pm “ How would you get the insurance id you don't apply?”

Thanks for the reply, I assumed that I have an ID since I’ve been purchasing on the marketplace each year, but have always bypassed the income questions since it wasn’t relevant. Or, is the ID that you mentioned only available when income is calculated?
I believe the “id” you are referring to is a typo for the word “if”.

The way it works is:

1. You decide you want to buy health insurance on the ACA exchange.
2. If you want insurance to start on June 1st, you fill out an application on the ACA exchange website in May. The earlier, the better.
3. You provide an estimate of your MAGI income for the year as well as zip code, age, etc.
4. The website calculates the subsidy that you qualify for and presents you with health plans for your consideration that are available in your zip code.
5. You pick whichever plan you want to.
6. You will be asked how much, if any, of the available subsidy that you wish to apply to your monthly premiums.
7. You submit your application and it hopefully will be approved, but they may ask you to submit supporting income documents and such.
8. You’ll be advised how to pay your first month premium to your chosen insurance company. If you took a subsidy, the premium due should reflect it.
9. In January of the next year, the ACA exchange will send you a 1095-A form to use when filing your federal taxes.
10. The 1095-A articulates the subsidy you qualified for and how much of it the you actually took in advance.
11. The tax software you use or your tax preparer uses the 1095 info and your actual income to determine whether you have to pay some of the subsidy back or if you get some of the subsidy credited to you as a tax credit.
12. If you took no subsidy as a monthly premium reduction, and you qualify for one, you will be credited the full subsidy on you tax form. It could be used to reduce your overall taxes due or it could just be refunded to you, depending on the rest of your tax situation.
Yes. That was a typo on my part.

Great explanation on how the process works!

One minor clarification on item #2 above.
If you want the coverage to start first of the month, you have to have a valid application accepted by the 15th of the prior month. If you apply after the 15th, the coverage starts the first of the month after the next.
How do I avoid thousands of phone calls from the different insurance companies as soon as I enter my information? Phone Number is a required field, just to see what kind of plan Health Connector offers.
marcopolo
Posts: 4319
Joined: Sat Dec 03, 2016 10:22 am

Re: ACA subsidy cliff now going away! Yay!

Post by marcopolo »

peke9898 wrote: Tue Jun 08, 2021 3:28 pm
marcopolo wrote: Fri May 14, 2021 3:51 pm
PaunchyPirate wrote: Fri May 14, 2021 3:41 pm
standard7 wrote: Fri May 14, 2021 3:25 pm “ How would you get the insurance id you don't apply?”

Thanks for the reply, I assumed that I have an ID since I’ve been purchasing on the marketplace each year, but have always bypassed the income questions since it wasn’t relevant. Or, is the ID that you mentioned only available when income is calculated?
I believe the “id” you are referring to is a typo for the word “if”.

The way it works is:

1. You decide you want to buy health insurance on the ACA exchange.
2. If you want insurance to start on June 1st, you fill out an application on the ACA exchange website in May. The earlier, the better.
3. You provide an estimate of your MAGI income for the year as well as zip code, age, etc.
4. The website calculates the subsidy that you qualify for and presents you with health plans for your consideration that are available in your zip code.
5. You pick whichever plan you want to.
6. You will be asked how much, if any, of the available subsidy that you wish to apply to your monthly premiums.
7. You submit your application and it hopefully will be approved, but they may ask you to submit supporting income documents and such.
8. You’ll be advised how to pay your first month premium to your chosen insurance company. If you took a subsidy, the premium due should reflect it.
9. In January of the next year, the ACA exchange will send you a 1095-A form to use when filing your federal taxes.
10. The 1095-A articulates the subsidy you qualified for and how much of it the you actually took in advance.
11. The tax software you use or your tax preparer uses the 1095 info and your actual income to determine whether you have to pay some of the subsidy back or if you get some of the subsidy credited to you as a tax credit.
12. If you took no subsidy as a monthly premium reduction, and you qualify for one, you will be credited the full subsidy on you tax form. It could be used to reduce your overall taxes due or it could just be refunded to you, depending on the rest of your tax situation.
Yes. That was a typo on my part.

Great explanation on how the process works!

One minor clarification on item #2 above.
If you want the coverage to start first of the month, you have to have a valid application accepted by the 15th of the prior month. If you apply after the 15th, the coverage starts the first of the month after the next.
How do I avoid thousands of phone calls from the different insurance companies as soon as I enter my information? Phone Number is a required field, just to see what kind of plan Health Connector offers.
I am not sure what "Health Connector" is, I have used the federal "healthcare.gov" site in 2 states, and have never had an insurance company call me.
Once in a while you get shown the light, in the strangest of places if you look at it right.
MikeG62
Posts: 3717
Joined: Tue Nov 15, 2016 3:20 pm
Location: New Jersey

Re: ACA subsidy cliff now going away! Yay!

Post by MikeG62 »

michaeljc70 wrote: Tue Jun 08, 2021 2:40 pm
nalor511 wrote: Tue Jun 08, 2021 2:07 pm
michaeljc70 wrote: Tue Jun 08, 2021 1:52 pm I updated my application and we are eligible for an extra $300/mo subsidy. I did this around 2 weeks ago. However, even for the upcoming June bill, I don't see that being reflected. Do I have to reselect a plan (even if keeping the same one)? Or does this just take longer than a couple of weeks to be reflected?
If you make a change on Month A before the 15th, changes take effect month B. If you make changes Month A after the 15th, changes take affect month C
Okay. Thanks. I made the change May 26th so I guess it will be reflected for July which is paid in June, but it isn't showing yet on my insurers website.
It may not be reflected even then.

I submitted my application in March and it was accepted. They asked for income verification in mid April and I submitted that around April 20th. So following the guidance above my bill should have updated for June 1. Well it was for the GetCoveredNJ web site but not the BCBS web site. In fact, the BCBS web site showed an amount due of $0. Yet when I called BCBS they said I owed the amount net of the subsidy (around $885 in my case) and suggested I do a manual payment for that amount for June. Said if I didn’t then the auto pay would not process correctly on July 1.

They claim their bill is sent out based upon info on hand by the 6th of the month. Claimed they did not have the update from GetCoveredNJ in time to reflect it in that payment. Yet, why did they drop the bill to $0? The whole thing seems poorly managed. This is why I had cut healthcare.gov (and subsequently GetCoveredNJ) out in the first place. I only saw problems putting middlemen in the process. Unfortunately to get the APC I had to re-enroll in the same BCBS policy we had through GetCoveredNJ.

Hopefully it will show up right for July.
Last edited by MikeG62 on Thu Jun 10, 2021 12:05 pm, edited 2 times in total.
Real Knowledge Comes Only From Experience
peke9898
Posts: 74
Joined: Thu Mar 05, 2020 1:19 pm

Re: ACA subsidy cliff now going away! Yay!

Post by peke9898 »

marcopolo wrote: Tue Jun 08, 2021 3:50 pm
peke9898 wrote: Tue Jun 08, 2021 3:28 pm
marcopolo wrote: Fri May 14, 2021 3:51 pm
PaunchyPirate wrote: Fri May 14, 2021 3:41 pm
standard7 wrote: Fri May 14, 2021 3:25 pm “ How would you get the insurance id you don't apply?”

Thanks for the reply, I assumed that I have an ID since I’ve been purchasing on the marketplace each year, but have always bypassed the income questions since it wasn’t relevant. Or, is the ID that you mentioned only available when income is calculated?
I believe the “id” you are referring to is a typo for the word “if”.

The way it works is:

1. You decide you want to buy health insurance on the ACA exchange.
2. If you want insurance to start on June 1st, you fill out an application on the ACA exchange website in May. The earlier, the better.
3. You provide an estimate of your MAGI income for the year as well as zip code, age, etc.
4. The website calculates the subsidy that you qualify for and presents you with health plans for your consideration that are available in your zip code.
5. You pick whichever plan you want to.
6. You will be asked how much, if any, of the available subsidy that you wish to apply to your monthly premiums.
7. You submit your application and it hopefully will be approved, but they may ask you to submit supporting income documents and such.
8. You’ll be advised how to pay your first month premium to your chosen insurance company. If you took a subsidy, the premium due should reflect it.
9. In January of the next year, the ACA exchange will send you a 1095-A form to use when filing your federal taxes.
10. The 1095-A articulates the subsidy you qualified for and how much of it the you actually took in advance.
11. The tax software you use or your tax preparer uses the 1095 info and your actual income to determine whether you have to pay some of the subsidy back or if you get some of the subsidy credited to you as a tax credit.
12. If you took no subsidy as a monthly premium reduction, and you qualify for one, you will be credited the full subsidy on you tax form. It could be used to reduce your overall taxes due or it could just be refunded to you, depending on the rest of your tax situation.
Yes. That was a typo on my part.

Great explanation on how the process works!

One minor clarification on item #2 above.
If you want the coverage to start first of the month, you have to have a valid application accepted by the 15th of the prior month. If you apply after the 15th, the coverage starts the first of the month after the next.
How do I avoid thousands of phone calls from the different insurance companies as soon as I enter my information? Phone Number is a required field, just to see what kind of plan Health Connector offers.
I am not sure what "Health Connector" is, I have used the federal "healthcare.gov" site in 2 states, and have never had an insurance company call me.
I was laid off last year and tried to inquire about insurance using this site (https://www.mahix.org/individual/) site. I was getting many calls. The process was very frustrating and I decided to go with my DH's insurance through his work. Am I supposed to use healthcare.gov? I am located in MA.
marcopolo
Posts: 4319
Joined: Sat Dec 03, 2016 10:22 am

Re: ACA subsidy cliff now going away! Yay!

Post by marcopolo »

peke9898 wrote: Tue Jun 08, 2021 8:34 pm
marcopolo wrote: Tue Jun 08, 2021 3:50 pm
peke9898 wrote: Tue Jun 08, 2021 3:28 pm
marcopolo wrote: Fri May 14, 2021 3:51 pm
PaunchyPirate wrote: Fri May 14, 2021 3:41 pm

I believe the “id” you are referring to is a typo for the word “if”.

The way it works is:

1. You decide you want to buy health insurance on the ACA exchange.
2. If you want insurance to start on June 1st, you fill out an application on the ACA exchange website in May. The earlier, the better.
3. You provide an estimate of your MAGI income for the year as well as zip code, age, etc.
4. The website calculates the subsidy that you qualify for and presents you with health plans for your consideration that are available in your zip code.
5. You pick whichever plan you want to.
6. You will be asked how much, if any, of the available subsidy that you wish to apply to your monthly premiums.
7. You submit your application and it hopefully will be approved, but they may ask you to submit supporting income documents and such.
8. You’ll be advised how to pay your first month premium to your chosen insurance company. If you took a subsidy, the premium due should reflect it.
9. In January of the next year, the ACA exchange will send you a 1095-A form to use when filing your federal taxes.
10. The 1095-A articulates the subsidy you qualified for and how much of it the you actually took in advance.
11. The tax software you use or your tax preparer uses the 1095 info and your actual income to determine whether you have to pay some of the subsidy back or if you get some of the subsidy credited to you as a tax credit.
12. If you took no subsidy as a monthly premium reduction, and you qualify for one, you will be credited the full subsidy on you tax form. It could be used to reduce your overall taxes due or it could just be refunded to you, depending on the rest of your tax situation.
Yes. That was a typo on my part.

Great explanation on how the process works!

One minor clarification on item #2 above.
If you want the coverage to start first of the month, you have to have a valid application accepted by the 15th of the prior month. If you apply after the 15th, the coverage starts the first of the month after the next.
How do I avoid thousands of phone calls from the different insurance companies as soon as I enter my information? Phone Number is a required field, just to see what kind of plan Health Connector offers.
I am not sure what "Health Connector" is, I have used the federal "healthcare.gov" site in 2 states, and have never had an insurance company call me.
I was laid off last year and tried to inquire about insurance using this site (https://www.mahix.org/individual/) site. I was getting many calls. The process was very frustrating and I decided to go with my DH's insurance through his work. Am I supposed to use healthcare.gov? I am located in MA.

MA has its own healthcare exchange, so you can NOT use the federal (healthcare.gov) web site, you have to use the state exchange. I am not familiar with the MA site, hopefully someone familiar with how things work in MA will come along here and provide more helpful info.

Good luck to you.
Once in a while you get shown the light, in the strangest of places if you look at it right.
MikeG62
Posts: 3717
Joined: Tue Nov 15, 2016 3:20 pm
Location: New Jersey

Re: ACA subsidy cliff now going away! Yay!

Post by MikeG62 »

MikeG62 wrote: Tue Jun 08, 2021 4:53 pm
michaeljc70 wrote: Tue Jun 08, 2021 2:40 pm
nalor511 wrote: Tue Jun 08, 2021 2:07 pm
michaeljc70 wrote: Tue Jun 08, 2021 1:52 pm I updated my application and we are eligible for an extra $300/mo subsidy. I did this around 2 weeks ago. However, even for the upcoming June bill, I don't see that being reflected. Do I have to reselect a plan (even if keeping the same one)? Or does this just take longer than a couple of weeks to be reflected?
If you make a change on Month A before the 15th, changes take effect month B. If you make changes Month A after the 15th, changes take affect month C
Okay. Thanks. I made the change May 26th so I guess it will be reflected for July which is paid in June, but it isn't showing yet on my insurers website.
It may not be reflected even then.

I submitted my application in March and it was accepted. They asked for income verification in mid April and I submitted that around April 20th. So following the guidance above my bill should have updated for June 1. Well it was for the GetCoveredNJ web site but not the BCBS web site. In fact, the BCBS web site showed an amount due of $0. Yet when I called BCBS they said I owed the amount net of the subsidy (around $885 in my case) and suggested I do a manual payment for that amount for June. Said if I didn’t then the auto pay would not process correctly on July 1.

They claim their bill is sent out based upon info on hand by the 6th of the month. Claimed they did not have the update from GetCoveredNJ in time to reflect it in that payment. Yet, why did they drop the bill to $0? The whole thing seems poorly managed. This is why I had cut healthcare.gov (and subsequently GetCoveredNJ) out in the first place. I only saw problems putting middlemen in the process. Unfortunately to get the APC I had to re-enroll in the same BCBS policy we had through GetCoveredNJ.

Hopefully it will show up right for July.
Edited to add:

July bill arrived yesterday and it does reflect the APC. So looks like I am good to go for the rest of the year.

What I don’t know is whether I will be entitled to the credit for April and May, as I was enrolled through GetCoveredNJ for those months but did not receive any tax credit? Hoping I can take care of this on my 2021 return. I assume no go for Jan through March as although I was on the same plan then the coverage was not purchased through GetCoveredNJ (but instead directly from BCBS). Anyone know the answer to these questions?
Real Knowledge Comes Only From Experience
marcopolo
Posts: 4319
Joined: Sat Dec 03, 2016 10:22 am

Re: ACA subsidy cliff now going away! Yay!

Post by marcopolo »

MikeG62 wrote: Thu Jun 10, 2021 12:06 pm
MikeG62 wrote: Tue Jun 08, 2021 4:53 pm
michaeljc70 wrote: Tue Jun 08, 2021 2:40 pm
nalor511 wrote: Tue Jun 08, 2021 2:07 pm
michaeljc70 wrote: Tue Jun 08, 2021 1:52 pm I updated my application and we are eligible for an extra $300/mo subsidy. I did this around 2 weeks ago. However, even for the upcoming June bill, I don't see that being reflected. Do I have to reselect a plan (even if keeping the same one)? Or does this just take longer than a couple of weeks to be reflected?
If you make a change on Month A before the 15th, changes take effect month B. If you make changes Month A after the 15th, changes take affect month C
Okay. Thanks. I made the change May 26th so I guess it will be reflected for July which is paid in June, but it isn't showing yet on my insurers website.
It may not be reflected even then.

I submitted my application in March and it was accepted. They asked for income verification in mid April and I submitted that around April 20th. So following the guidance above my bill should have updated for June 1. Well it was for the GetCoveredNJ web site but not the BCBS web site. In fact, the BCBS web site showed an amount due of $0. Yet when I called BCBS they said I owed the amount net of the subsidy (around $885 in my case) and suggested I do a manual payment for that amount for June. Said if I didn’t then the auto pay would not process correctly on July 1.

They claim their bill is sent out based upon info on hand by the 6th of the month. Claimed they did not have the update from GetCoveredNJ in time to reflect it in that payment. Yet, why did they drop the bill to $0? The whole thing seems poorly managed. This is why I had cut healthcare.gov (and subsequently GetCoveredNJ) out in the first place. I only saw problems putting middlemen in the process. Unfortunately to get the APC I had to re-enroll in the same BCBS policy we had through GetCoveredNJ.

Hopefully it will show up right for July.
Edited to add:

July bill arrived yesterday and it does reflect the APC. So looks like I am good to go for the rest of the year.

What I don’t know is whether I will be entitled to the credit for April and May, as I was enrolled through GetCoveredNJ for those months but did not receive any tax credit? Hoping I can take care of this on my 2021 return. I assume no go for Jan through March as although I was on the same plan then the coverage was not purchased through GetCoveredNJ (but instead directly from BCBS). Anyone know the answer to these questions?

April and May will be reconciled on your tax return, and you will get those credits. I am not sure, but it seems unlikely you would qualify for the credits for the months you were on an off-market plan.
Once in a while you get shown the light, in the strangest of places if you look at it right.
MikeG62
Posts: 3717
Joined: Tue Nov 15, 2016 3:20 pm
Location: New Jersey

Re: ACA subsidy cliff now going away! Yay!

Post by MikeG62 »

marcopolo wrote: Thu Jun 10, 2021 1:52 pm
MikeG62 wrote: Thu Jun 10, 2021 12:06 pm
MikeG62 wrote: Tue Jun 08, 2021 4:53 pm
michaeljc70 wrote: Tue Jun 08, 2021 2:40 pm
nalor511 wrote: Tue Jun 08, 2021 2:07 pm

If you make a change on Month A before the 15th, changes take effect month B. If you make changes Month A after the 15th, changes take affect month C
Okay. Thanks. I made the change May 26th so I guess it will be reflected for July which is paid in June, but it isn't showing yet on my insurers website.
It may not be reflected even then.

I submitted my application in March and it was accepted. They asked for income verification in mid April and I submitted that around April 20th. So following the guidance above my bill should have updated for June 1. Well it was for the GetCoveredNJ web site but not the BCBS web site. In fact, the BCBS web site showed an amount due of $0. Yet when I called BCBS they said I owed the amount net of the subsidy (around $885 in my case) and suggested I do a manual payment for that amount for June. Said if I didn’t then the auto pay would not process correctly on July 1.

They claim their bill is sent out based upon info on hand by the 6th of the month. Claimed they did not have the update from GetCoveredNJ in time to reflect it in that payment. Yet, why did they drop the bill to $0? The whole thing seems poorly managed. This is why I had cut healthcare.gov (and subsequently GetCoveredNJ) out in the first place. I only saw problems putting middlemen in the process. Unfortunately to get the APC I had to re-enroll in the same BCBS policy we had through GetCoveredNJ.

Hopefully it will show up right for July.
Edited to add:

July bill arrived yesterday and it does reflect the APC. So looks like I am good to go for the rest of the year.

What I don’t know is whether I will be entitled to the credit for April and May, as I was enrolled through GetCoveredNJ for those months but did not receive any tax credit? Hoping I can take care of this on my 2021 return. I assume no go for Jan through March as although I was on the same plan then the coverage was not purchased through GetCoveredNJ (but instead directly from BCBS). Anyone know the answer to these questions?

April and May will be reconciled on your tax return, and you will get those credits. I am not sure, but it seems unlikely you would qualify for the credits for the months you were on an off-market plan.
Thanks Marcopolo.

I tend to agree with you, despite the fact that the off marketplace plan I was on for Jan-Mar is identical to the marketplace version of that plan.

I thought I was being smart cutting out the middleman and buying directly from BCBS. I also did not qualify for any subsidy at the time so did not see any reason to go through GetCoveredNJ. Looks like I outsmarted myself. Should have just went through GetCoveredNJ from the beginning. That decision will end up costing me ~$1,500. :oops:
Real Knowledge Comes Only From Experience
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