- 145
Have client that is under 400% FPL. Age 31. Sherpa and Kaiser show no subsidy. However that same income at age 50 gets subsidy. All other things being equal. Obviously age factors into the subsidy calculation. Can anyone explain this?
Subsidy Determined by Age?
- Thread starter Experienced Agent
- Start date
ACA has determined that your health insurance should cost no more than 9.5% of your income. (MAGI)
People who are 50 pay more for health insurance.
Subsidy is based on the second lowest cost silver plan.
Age and zip code play a major role in subsidy determination.
People who are 50 pay more for health insurance.
Subsidy is based on the second lowest cost silver plan.
Age and zip code play a major role in subsidy determination.
Thought about changing your username lately? Rookie question
- Thread starter
- #4
- 145
You got that right, I feel like a rookie jumping into ACA.
With your humble response, I'll answer your question.
It's all based on the second lowest cost silver plan (SLCSP), and every county is different. If the SLCSP is less than 9.5% of their income, then no subsidy, regardless of income.
Ex: If 30 yr old SLSCP is $200/mo, cost is $2400 a year. For arguments sake, we'll assume 10% of income level is $24,000 a year. Then no subsidy unless income is less than 24k. If 50 yrs old, and same 24k income, but SLCSP is $400/mo, then this client will get a subsidy to bring cost down to $200/mo and get a $200mo subsidy.
- Thread starter
- #6
- 145
Appreciate the info. Yes, I've gotten my balls busted more than once because of my username. It was a default and I'm too busy to change it or to find out if I can. The truth is, I was licensed in in 1989. I still don't know everything!!!
