ACA vs Medicare

[The Crusher]

Hello MMM Forum Folk:

First Time posting here so please excuse the noob question.  :)

If you have healthcare coverage through the ACA with significant subsidies and you AGI at the end of the year is below the minimum threshold so that you actually should have been on Medicare, are there any penalties?  This could easily happen when you loose your job and have to estimate when you will be able to get another (and start generating income).

THANKS!

[wenchsenior]

I can't speak to penalties, but I think you mean Medicaid, correct? Medicare is for old people (mainly). Medicaid is for the extremely  low income/poor.

[The Crusher]

Sorry, yes - medicaid.

[jim555]

Nothing happens.  You keep the same plan and you would probably get some back at tax time when you reconcile.  As long as they accept the estimate you are good.  You could also re-estimate mid year and drop into Medicaid, if that is what you want.

[seattlecyclone]

Right, you can switch to Medicaid mid-year if your month-to-month income changes. If your goal is to avoid Medicaid you can give an overestimate, and as long as the exchange accepts your estimate there's no penalty. You'll likely even get some money back at tax time because you paid too much premium. The more years you overestimate, the more likely the exchange may ask for some proof before believing your wrong numbers.

[The Crusher]

Thanks everyone.  It is really interesting that there is no penalty given how restrictive some of the ACA is but then again if you did ask for a return of subsidies from someone making under say $12K, how would you ever collect?  :)

My oldest son is finding himself (fancy term is individuating).  As such he has been really slow to re-enter the workforce officially so I was worried he would have to repay his subsidies when he under earns this year.  Sounds like the answer is no.

Individuate... I am old school but it sounds like a fancy term to me for getting your crap together...  :)