Subsidy 2015

[rugerred]

I know I am jumping way ahead, but when it comes time to renew next year how will the subsidy be calculated? Will it go from the 2014 application or will a new one have to be submitted?

I haven't seen any guidance going forward.

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[RayNY]

Subsidy is an "advanced premium tax credit" (APTC). Like any tax credit, you don't get it automatically just because you had it last year, and last year has nothing to do with this year.

So, basically, you re-do the whole thing from square one. Clients that already have an account for the exchange (and manage to not forget their log-in during the intervening year) can log back in, update info as needed, and re-apply for a new plan. You can also perform this on their behalf if you're the BoR.

You'll be receiving a subsidy based on the new reference plan in the region, new FPL level, and your new estimated 2015 income.

TL;DR It won't go from the 2014 app (besides profile info on the exchange portal). It is a new calculation on new data on a new app.

 

[rugerred]

Rework every client, that will take some time.

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[Yagents]

If client's income the same, it will be easy. Dis-enroll and re-enroll.
If income changes, most of the financial app will be in the system, change income, pick new plan.
15' will be based on 15' FPL's, and 15' expected income.

 

[rugerred]

If client's income the same, it will be easy. Dis-enroll and re-enroll.
If income changes, most of the financial app will be in the system, change income, pick new plan.
15' will be based on 15' FPL's, and 15' expected income.

You are much more confident than I am. I suppose you could gather some of the information ahead of time.

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[susanld]

I agree with all of the above. However, deep question is: currently while applying they ask to use 2012 tax return, so is it safe to assume that when applying for 2015 coverage the prompt will be for 2013 tax return reference?

 

[DS4]

I agree with all of the above. However, deep question is: currently while applying they ask to use 2012 tax return, so is it safe to assume that when applying for 2015 coverage the prompt will be for 2013 tax return reference?

For most people, when they applied for a subsidy, their 2013 hadnt been filed. Therefore, you use their 2012 has reference. You reference their 2012 AGI and then ask, "what do you expect your AGI to be in 2014?".

Repeat for 2015.

 

[rugerred]

I agree with all of the above. However, deep question is: currently while applying they ask to use 2012 tax return, so is it safe to assume that when applying for 2015 coverage the prompt will be for 2013 tax return reference?

The exchange is already asking about 2013 taxes. "Will your income be the same as reported on your 2013 tax return? "

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[AllenChicago]

this thread is depressing.will I have to spend the abbreviated 2015 open enrollment helping all the 2014 people transition to 2015 plans? There will be no time to enroll new people if this is the case.

 

[jemelton]

Arent you forgetting if they agreed to use income data from the IRS for the next 5 years