First my question:
Do I have to repay ACA child subsidies for 2022 if it turns out the kids should have been on CHIP instead?
I'm not in a state with an official waiting period, but ACA shot the application to CHIP who ruled us ineligible for CHIP, and I signed them up on an ACA plan, then it seems CHIP fumbled the application.
Second my background:
My last day on the job was 1/14. I applied for ACA in December. In 2021, I had job income and retirement income (a conversion to Roth IRA) to total almost $150k. Forms asked for "current income" among details about when insurance runs our and stated 2022 income. ACA stated I would need to get the kids covered under CHIP based on my reported income. The only income continuing in 2022 is about 65K of conversion income.
So I started applying for CHIP through my state's website called Compass (spoiler alert this was the wrong procedure). Submitted proof of income - old pay stubs, brokerage statement (for the Conversion), proof of chronic illness in one of the kids then waited. They eventually asked for a form from my employer telling them my last day. I submitted all of that and the application just sat. It's been sitting now for almost 2 weeks. Like I said, this was likely the wrong procedure because:
Meanwhile one of the 4 or 5 insurance companies that runs our state's CHIP program reached out by email. I thought it was odd only one would reach out, and it wasn't one I wanted to use, so I didn't do much with it.
I get notice back from ACA that "based on information provided in your application, members of your household appeared to be eligible for Medicaid or the Children's Health Insurance Program (CHIP). However, the Pennsylvania Department of Human Services has determined that one or more applicants do not qualify for these programs based on information that could include your household income and family size."
OK, fine so I signed them up for the ACA plan (it was cheap enough). Good.
I logged onto the Compass website to find that the application wasn't moving, that's odd since I had essentially a CHIP rejection letter from the ACA. I called a help number for my application, where I found there is another application to CHIP that has an income of $150K with the insurance company I didn't like.
Calling them, they stated I could just submit information showing my retirement income, and stating the employment income is ending too. I did that Monday, but it wasn't good enough for them to OK it. I submitted some more information, but they officially have 10 to 15 days to review after each new piece is submitted.
Oh, and CHIP isn't an outright rejection either. Instead of saying you make to much to be eligible, they say you make too much, so here's full-cost insurance and a bill.
