Did I screw up my health insurance?

[4tify]

I think I may have made an error in my first year of RE regarding insurance. A little complicated but here’s the deal.

I have an S corp open that has taken in about $50k this year. That will likely be it for 2022.

I purchased a HDHP directly from Blue Shield, not through ACA because I figured my income plus Roth conversion would cancel out any subsidy….but now that Manchin agreed to extend subsidies through 2025 I’m wondering if I screwed up and should have gone through my state exchange anyway?

Anyone we’ll versed in this with thoughts?

[MDM]

No legislation (AFAIK) currently being discussed will affect ACA premium tax credits for 2022.  They will be much like 2021's with a notable exception that receiving unemployment gets no special treatment.

As for 2023 and beyond, we'll see....

[secondcor521]

Unless the off-exchange plan has some specific benefit to you, I personally would switch over to the exchange version of the plan this fall.  If your income disqualifies you for subsidies, that's not a problem.

You could also simply decline the subsidies when you sign up, and if your income and the subsidy situation changes during 2023, claim them at tax time via Form 8962.

(If you're on a Silver plan and in CSR range, then it may make sense to try to get those when you sign up; those are not retroactive and not reconciled at tax time.)

[jim555]

I think I may have made an error in my first year of RE regarding insurance. A little complicated but here’s the deal.

I have an S corp open that has taken in about $50k this year. That will likely be it for 2022.

I purchased a HDHP directly from Blue Shield, not through ACA because I figured my income plus Roth conversion would cancel out any subsidy….but now that Manchin agreed to extend subsidies through 2025 I’m wondering if I screwed up and should have gone through my state exchange anyway?

Anyone we’ll versed in this with thoughts?

Looks like you messed up.  Since you didn't buy from the official Marketplace / web site you can't get a subsidy.  2021 and 2022 have no income cap so you would have gotten something.  If the Manchin agreement passes the cap is removed through 2025.

[4tify]

I think I may have made an error in my first year of RE regarding insurance. A little complicated but here’s the deal.

I have an S corp open that has taken in about $50k this year. That will likely be it for 2022.

I purchased a HDHP directly from Blue Shield, not through ACA because I figured my income plus Roth conversion would cancel out any subsidy….but now that Manchin agreed to extend subsidies through 2025 I’m wondering if I screwed up and should have gone through my state exchange anyway?

Anyone we’ll versed in this with thoughts?

Looks like you messed up.  Since you didn't buy from the official Marketplace / web site you can't get a subsidy.  2021 and 2022 have no income cap so you would have gotten something.  If the Manchin agreement passes the cap is removed through 2025.

Yeah this was my fear. Oh well, I’m still rich. I’ll get on the exchange this fall.

Thanks all!

[lifeisshort123]

Yes, get on the exchange as soon as you can.  Maybe even see if there is some way you might be able to qualify for a special enrollment period.  I’m unsure what that might be in your case, but the healthcare website explains what your options specifically might be.

[4tify]

Yes, get on the exchange as soon as you can.  Maybe even see if there is some way you might be able to qualify for a special enrollment period.  I’m unsure what that might be in your case, but the healthcare website explains what your options specifically might be.

Will do thanks 🙏🏻