IRS Changing APTC with Out Notice

Tkruger

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I am getting multiple reports from clients that after they have filed their taxes for the 2014 tax year that their APTC is being reduced or increased based off of their tax filing.

WTH?!?

The application process states "What do you expect to make in 2015?" Not..."Hey, what do you think you're going to make in 2K15 but we're going to check your 2K14 taxes and make adjustments as we see fit!"

Anyone else had this reported yet? This is just starting to happen and many clients haven't figured it out until the auto draft comes out of their account....


This is totally insane.
 
I am getting multiple reports from clients that after they have filed their taxes for the 2014 tax year that their APTC is being reduced or increased based off of their tax filing.

This is just starting to happen and many clients haven't figured it out until the auto draft comes out of their account....

Could it be that the APTC stayed the same, but the premium changed, for some reason? Can you log into their account at the insurer and see which of those two components was adjusted for April?
 
Did these same people have to send in proof of income?
Or was the only thing that triggered it was the tax filing?
 
@Allen, If it was a complete loss of APTC I could see that the MP didn't receive requested verification.

However, client called last week freaking out because she lost her APTC and no income verification was requested. The Nav told her when she called in that her income for 14 was below the 100% FPL and when I called I was told the same thing.

Another client called in stating that their premium had increased by $120 per month. In looking at the account I could see the original plan term and the new one taking effect 5-1 with the adjusted amount. Same thing here no income verification was requested.

Yet another situation was a client who paid the full year. The policy termed 2 times and then was reinstated for the month of June with a Higher base premium with the same plan. Her APTC remained the same.

As the issues come up I'll post the outcome.
 
ditto tater, been happening for a while, what a pain. I get at least one of these a day right now. The one I just received the marketplace yanked the tax credits and kicked the kids off the plan. Client just found out today when she went to pick up medicine for her daughter. They are direct draft and the insurance company drafted the modified amount without notice, this is the second one this week that had the wrong premium drafted. Heads up on that.
 
It happened to one of mine. I detailed in another post. He sent in requested information but they didn't like it or never logged it. Changed his aptc without notice based on 2014 taxes.

I expect that many more will be calling me soon. Have had three so far this week with issues. Luckily most of mine with income requested have already termed for non pay. :no: :D
 
Making it worse, the Marketplace is not even sending out notices of APTC loss in a timely fashion, maybe 3 weeks later, and the letter is very generic with NO specifics.

Someone needs to take this debacle to the press. Fricken joke

The Obamacare ON exchange business cycle:

Write the biz
Save the biz
Lose the biz

Rinse and repeat
 
I had a couple that was paying $598 per month; total amount was $1,393.00. Their bank was drafted $1,393.00 this past Monday. They filed their taxes showing a loss on their business. I had adamantly warned them not to show a loss. I wrote a short-term on them and told them they need to stay OFF Exchange. This is all so 'NOT' Affordable.

Cigna drafted $1,393.00 per month. At least BC/BS will change them from bank draft to Direct Bill when this happens.

There is no notice, though. One lady called asking me why BC/BS hadn't drafted her account on the 1st? I called them to find out her total was now $680 instead of the under $200 she was paying. Of course, she cannot pay that.

What a debacle this is turning out to be! I see an unraveling.
 
YAGENT: none of us will say a word for fear of loosing our certification. let me remind you of the letter sent to NAHU(I think) that stated we needed to cease spreading "lies" about ACA back in 2010, 2011
 
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