Subsidies

[SamIam]

How will the subsidies work? Someone told me that if people qualify for a subsidy they will get a credit back at the end of the year. That doesn't sound right to me. I thought if somebody was paying $400. a month with a subsidy of $200.00 for example they would write out monthly check for the premium of $200.00. He is telling me they will be paying out $400.00 & get the monthly credit at the end of the year.

Is he wrong?

 

[taterpeeler]

How will the subsidies work? Someone told me that if people qualify for a subsidy they will get a credit back at the end of the year. That doesn't sound right to me. I thought if somebody was paying $400. a month with a subsidy of $200.00 for example they would write out monthly check for the premium of $200.00. He is telling me they will be paying out $400.00 & get the monthly credit at the end of the year.

Is he wrong?

he is incorrect.... aca allows for APTC advanced premium tax credits meaning only paying the insurance company the "200' you talk about..... however one can make the family decision to receive the credit at the time of tax filling....

 

[Ann H]

TaterPeeler is correct. The subsidy is advanced to the insurance company monthly.

 

[SamIam]

I thought so because otherwise these people wouldn't be able to pay the premium.

 

[AllenChicago]

I thought so because otherwise these people wouldn't be able to pay the premium.

People also have the option to not have the monthly subsidy sent to the insurance company to help pay their premium. Instead, they can claim it on their income tax return for that year (filed the next year) and the subsidy money will be sent to them. This information is in the Exchange Certification course.

Naturally, not many people under 401% of poverty will do this, but it's an option for those who want to steer WAY CLEAR of potential IRS penalties and scrutiny.
-ac

 

[Yagents]

Attestation that consumers will have to "accept" to get the APTC. The last sentence is the kicker:

http://r20.rs6.net/tn.jsp?t=a7fa76n...oads/library/APTC_Attestations_5CR_080513.pdf

 

[somarco]

Doesn't say anything about penalties and interest.

 

[AllenChicago]

The CMS Exchange Certification Courses were a real eye opener in this regard. It's ironic that the subsidy eligibility phase is now 10 times more involved than getting a 2014 health insurance policy. Getting health insurance used to be a big bug-a-boo for some people. Now, subsidy qualification and future claw-backs will bring the ulcers!

 

[somarco]

Much easier to qualify for welfare, section 8 and food stamps.

 

[bluediamond]

Well if a carrier's system is as good as I'm being told, I'll have to explain plans, the credit and clawback. But now that I think of what I just wrote I have already had some scenario's from prospects I've had to explain a lot more. Leased employee's is one. We deal with several around here that are leased. Although one of the big PEO's have a planned document quite a few of their businesses are not through that document but rather have their own group set up through someone else. But we're being told the responsibility will fall on whoever issue's W-2. Large group reporting has been delayed but have to follow all other rules. I already have employee's of one such group that has their own group thru another agent but fall under a leasing company who has planned document. This one particular group's renewal is Oct 1, so they would not have to worry until Oct 2014, but the planned document renews Jan 1 which will have to follow all rule's except reporting. So I wonder if this group has to fall under the larger PEO or I can write individuals Oct 1, because most will qualify for subsidy and they are under 50? Several other scenario's I have figured out. I bet Ann can answer this.