Affordable Care Act loophole?

[breezie]

True or false?

Does anyone know if this is accurate.

Some internet forums claim that the ACA subsidies are determined SOLELY by your income.

So, in other words you can have huge assets (cars, boats, RVs, homes) but if your only income is a meager SSI payment, you would be eligible for maximum subsidies.

If true, this would be the best healthcare deal available.

 

[Ernie n Tara]

It's true within limits. We save considerably over the price of the policy (if 7, 200/yr reflects saaings) because we are still cash rich and working it off over several years. Wasn't really planned that way but it worked out. Eventually our expenses and mandetory withdrawals will eliminate this advantage.

I'd also note that we don't have a McMansion and three expensive cars. No European vacations, etc. In other words we live closer to an Income that the subsidies are intended for.

Ernie

 

[Oldgator73]

I?m going to look it up. I just asked that question online and went to one site that included a subsidy calculator. It only asked for age, birthday and annual income. I don?t know who would  value the assets.

 

[johnhicks]

It doesn't consider assets, just income.

 

[SpencerPJ]

It doesn't consider assets, just income.

Be careful, an IRA or 401k distribution might be considered income, it's taxable.

 

[Oldgator73]

Maybe the income comes from your tax returns.

 

[Gary RV_Wizard]

The distributions are indeed "income", but not the IRA or 401k assets (the account balance).

 

[Isaac-1]

Oh, Cr@pp what awful timing to get that letter last week where an oil company wants to lease mineral rights on our farm land.

 

[John From Detroit]

Ask the oil company if they would not mind waiting a bit to sign the lease (Trust if they think you are sitting on oil and the wait is only 3 months they will be happy).

But remember.. Just now they are once again doing "Maintenance" on the ACA computer system so good luck with registering... 

THankfully my retirement package includes a compliant insurance plan. plus Medicare, Plus a few other not required goodies.

 

[mrschwarz]

The subsidy is calculated on a Modified Adjusted Gross Income. It uses your Form 1040 income and adds back some other sources of income that don't count towards it. I don't recall all of the details because it's been a few years since I looked it up. There's plenty of information out on the interweb.

 

[MarLaM]

A few items to consider:

1) Medicaid eligibility varies from state to state.
2) Medicaid coverage does not necessarily cover you when out of state. I have heard that it will only cover emergency room visits or life-threatening conditions if you are out of state.
3) Physicians are not required to accept Medicaid. At least in the rural parts of our state, access to specialists can be very limited.

 

[Ernie n Tara]

Note that ACA is not available once you hit 65 (medicare instead).

Ernie

 

[Gary RV_Wizard]

what awful timing to get that letter last week where an oil company wants to lease mineral rights on our farm land.

Relax. As a private taxpayer, you don't report income on your tax return until it is actually received (the money is deposited in your account).  It should be no problem to defer actual payment til after Jan 1, and it might be possible to arrange for periodic payments or take payment in royalties rather than up front cash.

 

[Gods Country]

It's based on your adjusted gross income.

 

[zulu]

The subsidy is calculated on a Modified Adjusted Gross Income. It uses your Form 1040 income and adds back some other sources of income that don't count towards it. I don't recall all of the details because it's been a few years since I looked it up. There's plenty of information out on the interweb.

Right here: https://www.healthcare.gov/glossary/modified-adjusted-gross-income-magi/