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Sactoking's ACA Q&A Thread

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sactoking

Diamond Member
Sep 24, 2007
7,052
1,906
136
Apply now is my advice. If you enroll and it gets trashed then you're not out anything. If you don't enroll and a decision doesn't come immediately you may miss open enrollment. Biden is likely to increase enrollment time but not guaranteed.
 

JEDI

Lifer
Sep 25, 2001
27,422
1,402
126
Apply now is my advice. If you enroll and it gets trashed then you're not out anything.
If you don't enroll and a decision doesn't come immediately you may miss open enrollment. Biden is likely to increase enrollment time but not guaranteed.
i have till dec 15 to enroll.
the decision is expected end of Nov.

if i wait and obamacare does get canceled, i can enter a lower income on healthcare.gov and go on medicaid instead.

or just go on medicaid (northern VA) for 2021?
 

JEDI

Lifer
Sep 25, 2001
27,422
1,402
126
im currently on obamacare for 2020. (silver plan, max subsidies)

i have to do a Roth conversion by dec 2020 to inflate my income to the $17750 minimum for Obamacare.

What would happen if my agi is less than $17750 for 2020? (in my 2020 application, i said i will make $17750 for 2020)
i live in VA.

thx
 
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sactoking

Diamond Member
Sep 24, 2007
7,052
1,906
136
im currently on obamacare for 2020. (silver plan, max subsidies)

i have to do a Roth conversion by dec 2020 to inflate my income to the $17750 minimum for Obamacare.

What would happen if my agi is less than $17750? (in my 2020 application, i said i will make $17750 for 2020)
i live in VA.

thx
Virginia has expanded Medicaid eligibility so if you fall below the 133% FPL threshold you'll be eligible for Medicaid.
 

JEDI

Lifer
Sep 25, 2001
27,422
1,402
126
Virginia has expanded Medicaid eligibility so if you fall below the 133% FPL threshold you'll be eligible for Medicaid.
umm.. not what im talking about.

for 2020, i told healthcare.gov that i WILL make 17750.
im currently getting full subsidies.

what happens if i dont make 17750 by dec 31, 2020?
do i have to pay back all those subsidies?
 

sactoking

Diamond Member
Sep 24, 2007
7,052
1,906
136
umm.. not what im talking about.

for 2020, i told healthcare.gov that i WILL make 17750.
im currently getting full subsidies.

what happens if i dont make 17750 by dec 31, 2020?
do i have to pay back all those subsidies?
Sorry, I misunderstood. The way the law is written, yes you will have to pay them back. There is a cap on what you have to repay. If your MAGI comes back at less than 200% FPL, which it should if you were technically Medicaid eligible, the amount of subsidy you have to repay is $300.
 

JEDI

Lifer
Sep 25, 2001
27,422
1,402
126
Can someone explain the changes to Obamacare in Biden's $1.9T Covid Relief bill?

1) there's no more 400% subsidy cliff?
how does that work?

2) i read There's a subsidy tax holiday for 2020 meaning if you said you were under 400% but when you file your taxes in 2021, you were actually over 400% then you dont have to pay back the subsidies.
Does this apply to 2021 when you file in 2022?

3) Biden re-opened Obamacare signups at healthcare.gov.
i signed up last year (2020) for dental insurance that covers cleanings/fillings/root canals/crowns. ($32/month)
it has a 12 month waiting period for root canals/crowns.

i got my crown this year (feb 2021).
with this new enrollment period, can i choose to cancel my dental coverage without penalty?
 
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sactoking

Diamond Member
Sep 24, 2007
7,052
1,906
136
1) there's no more 400% subsidy cliff?
how does that work?
The amount you pay is based on two factors: the benchmark silver plan cost and your income relative to the Federal Poverty Level ('FPL').

Prior to the American Rescue Plan ('ARP') people with incomes between 100% and 133% FPL would contribute 2% of household income to premium for the benchmark silver plan. This contribution percentage would increase as income relative to FPL increases until it reaches 400% FPL at which point the premium tax credit would disappear completely. This caused a "subsidy cliff."

100% FPL is roughly $12,760 for a single person, meaning their premium costs would be capped at $255 per year or $21.25 per month. If the benchmark silver plan costs $500 per month they get a tax credit for the difference, or $478.75 per month. A single person at 400% FPL ($51,040 household income) has to contribute 9.78% of household income to premiums, or $415.98 per month. With the same $500 per month benchmark silver plan their tax credit is $84.02 per month. If their household income increases to ~$51,100, a difference of $60, they "graduate" out of the tax credit program and lose the $84.02 per month tax credit, or just over $1,000 per year.

Under the ARP the 400% FPL "subsidy cliff" is gone for 2021 and 2022. If your benchmark silver plan costs more than your household income contribution amount you will be eligible for a tax credit on the difference without regard to FPL. Put another way, in the example above earning the extra $60 in income and pushing household income to 401% FPL will not cause you to become ineligible for the $84.02 per month tax credit.

On top of this, the ARP reduces the household contribution amounts by about 2% in 2021 and 2022. Whereas before someone at 100-133% FPL was expected to pay 2% of household income with a sliding scale to 9.78% of household income at 300-400% FPL in these two years the scale starts at 0% of household income for 100-133% FPL and caps at 8.5% of household income at 300%+ FPL.

2) i read There's a subsidy tax holiday for 2020 meaning if you said you were under 400% but when you file your taxes in 2021, you were actually over 400% then you dont have to pay back the subsidies.
Does this apply to 2021 when you file in 2022?
The clawback prevention ONLY applies for tax year 2020. tax year 2021 will revert to normal, in which the IRS can recover ineligible tax credits subject to certain income limitations.

3) Biden re-opened Obamacare signups at healthcare.gov.
i signed up last year (2020) for dental insurance that covers cleanings/fillings/root canals/crowns. ($32/month)
it has a 12 month waiting period for root canals/crowns.

i got my crown this year (feb 2021).
with this new enrollment period, can i choose to cancel my dental coverage without penalty?
Technically, you could always cancel dental without penalty, all you have to do is stop paying premiums.
 

JEDI

Lifer
Sep 25, 2001
27,422
1,402
126
Technically, you could always cancel dental without penalty, all you have to do is stop paying premiums.
No way to remove my credit card on delta dental.
So I just put in a new credit card.
It's prepaid with .01 left
 

Ken g6

Programming Moderator, Elite Member
Moderator
Dec 11, 1999
15,529
2,588
55
It's almost enrollment time again. The advice on the Colorado website about household income is confusing. It says:

Include wages, salary, self-employment income, interest and dividends received, alimony received, Social Security and other income, before taxes are taken out, minus any deductions.
So, to estimate that from my 2020 1040, should I still use the Adjusted Gross Income line, or the Taxable Income line?
 

sactoking

Diamond Member
Sep 24, 2007
7,052
1,906
136
It's almost enrollment time again. The advice on the Colorado website about household income is confusing. It says:



So, to estimate that from my 2020 1040, should I still use the Adjusted Gross Income line, or the Taxable Income line?
You'd want to use adjusted gross income (AGI). Technically the ACA uses modified adjusted grid income (MAGI) but most people aren't affected by the modifications.
 
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JEDI

Lifer
Sep 25, 2001
27,422
1,402
126
It's almost enrollment time again. The advice on the Colorado website about household income is confusing. It says:



So, to estimate that from my 2020 1040, should I still use the Adjusted Gross Income line, or the Taxable Income line?
I just put down $18k and pay the difference in premiums when I file my taxes the following year.

Get an interest free loan from the govt. :)

What happens if you don't make $18k that year? Ie: self employed
Pay the premium in full when you do your taxes the next year? (For me, $600/month x 12 if that happens)

Obamacare much better than state medicaid
 
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JEDI

Lifer
Sep 25, 2001
27,422
1,402
126
What happens if you don't make $18k that year? Ie: self employed
Pay the premium in full when you do your taxes the next year?
(For me, $600/month x 12 if that happens)

Obamacare much better than state medicaid
Doing Obamacare application and came across this:
'I understand that I'm not eligible for a premium tax credit if I'm found eligible for other qualifying health coverage, like Medicaid, the Children's Health Insurance Program, or a job-based health plan. '

i guess that answers my question of not making the Obamacare minimum of $18k/yr for single.
You're supposed to be on Medicaid thus no subsidies for you.

Also, i was wondering why people with low paying jobs but expensive health care plans don't opt out and just enroll with Obamacare with subsidies.
That same statement also answers that question :eek:
 
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