Author Topic: Obama care in PA: no subsities because of resources???  (Read 4006 times)

Holyoak

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Obama care in PA: no subsities because of resources???
« on: December 07, 2014, 10:51:27 AM »
I thought subsidies were strictly based on income/AGI relative to a poverty scale, NOT resources.  Everything I have read at the ACA site says income, not a thing about resources???  When re-uping coverage, the ACA site said I would probably qualify for a subsidy/Medicaid/ whatever.  I finally got to speak with a rep from the PA dept of medicare/caide, and was told if I had over $2700 or $5000 (can't remember) in savings, IRA's, 401k etc that I would receive no subsidy because of excessive resources?

I have had a silver plan since last year, and have to re-up now, figure I should have also gotten a subsidy for that too all last year...  So, I have a silver plan, have a very low income; how do I get a break on my plan cost?  Who is right?  This shit, as with damn near any other Govt plan makes my head spin, and blood boil.  Thanks for the help. 

Emilyngh

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Re: Obama care in PA: no subsities because of resources???
« Reply #1 on: December 07, 2014, 11:07:42 AM »
According to the link below, states who expanded medicaid through ACA can no longer use asset tests.   My best guess is that Pennsylvania used to have them, but can no longer for those who enroll through ACA and whoever you spoke to is not aware of the change?

http://theincidentaleconomist.com/wordpress/bye-bye-medicaid-asset-test/

Tyler

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Re: Obama care in PA: no subsities because of resources???
« Reply #2 on: December 07, 2014, 11:30:36 AM »
If you already have a silver plan, I'm assuming you don't qualify for Medicaid because of your income. None of the marketplace plans are means tested. Try calling an ACA rep, not a Medicaid rep.
« Last Edit: December 07, 2014, 11:33:53 AM by Tyler »

geekette

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Re: Obama care in PA: no subsities because of resources???
« Reply #3 on: December 07, 2014, 12:36:23 PM »
Yeah, I think you may be confusing a couple of things - Medicare is for those over 65 (or disabled).  Medicaid is for very low income (run by the states and varies tremendously), and the ACA subsidies are for those between 133% and 400% of the federal poverty level for your family size. 

In NC (I don't know about other states), Medicaid (only) is asset tested.

dandarc

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Re: Obama care in PA: no subsities because of resources???
« Reply #4 on: December 07, 2014, 12:46:10 PM »
Yep - the key to playing this health insurance game now is managing your income.  You want MAGI to be near that 133% of poverty level, without going under so you can maximize your subsidy.

One more tax-related game for the early retiree to play!

Holyoak

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Re: Obama care in PA: no subsities because of resources???
« Reply #5 on: December 08, 2014, 07:42:42 AM »
Thank you very much everyone.

I chose the silver plan I am in, because the mix seemed like a good fit, and was comparable to the cost I had with my prior insurance, before I lost my job.  Maybe I will just go with a catastrophic plan, with the least expensive plan I am offered is $180 month....  $6600 deductible, and I pay for everything until that amount is reached. 

I am going to call the ACA number today, and would like to know how do I answer what my income/MAGI income is/will be in 2015?  Will this include all cap gains from my taxable Vanguard funds? Right now for this year just that one component of my stache returned about $68k, between appreciation and reinvested divs.  I have not taken a cent from this account however.  Will my 401k be factored, interest from savings accounts?  Basically all I know for sure is I will be living on actual bank savings in 2015, a RMD from an inherited IRA of about $3k, etc.  How the heck do I/what do I tell the ACA folks about my projected "income" fr 2015?  Sorry I am so convoluted with my questions, I basically want to know what to say when they as me

"what is my projected income for 2015"

Thanks again for the help everyone.

dandarc

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Re: Obama care in PA: no subsities because of resources???
« Reply #6 on: December 08, 2014, 09:04:53 AM »
Thank you very much everyone.

I chose the silver plan I am in, because the mix seemed like a good fit, and was comparable to the cost I had with my prior insurance, before I lost my job.  Maybe I will just go with a catastrophic plan, with the least expensive plan I am offered is $180 month....  $6600 deductible, and I pay for everything until that amount is reached. 

I am going to call the ACA number today, and would like to know how do I answer what my income/MAGI income is/will be in 2015?  Will this include all cap gains from my taxable Vanguard funds? Right now for this year just that one component of my stache returned about $68k, between appreciation and reinvested divs.  I have not taken a cent from this account however.  Will my 401k be factored, interest from savings accounts?  Basically all I know for sure is I will be living on actual bank savings in 2015, a RMD from an inherited IRA of about $3k, etc.  How the heck do I/what do I tell the ACA folks about my projected "income" fr 2015?  Sorry I am so convoluted with my questions, I basically want to know what to say when they as me

"what is my projected income for 2015"

Thanks again for the help everyone.
In your taxable accounts - dividends and realized capital gains are in your AGI - and I think are not one of the items that gets backed-out to get to MAGI for the ACA.  "Appreciation" unless you (or your funds) sells doesn't count - the gain has to be realized.

As far as what to do - you know your RMD amount, you'll know about what your dividends / capital gains were in 2014 in your taxable account.  You also have some interest from the bank account.  So add those up, and you have about as good an estimate as you can. 

Somewhat unrelated - you might want to consider starting a Roth Pipeline - if you've got nothing but dividends and a 3K RMD, you're leaving a lot of the 0% bracket on the table (Standard Deduction + Exemption).  I think you can do that in an inherited IRA?  Maybe one of our actual CPAs will clarify that.  That helps solve your "income" problem for the ACA if you want to stay on an exchange plan but maximize your subsidy as well.

dandarc

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Re: Obama care in PA: no subsities because of resources???
« Reply #7 on: December 08, 2014, 09:09:17 AM »
Also - start filling out your 1040 for 2014 right now - that will help clarify what your 2014 taxable income is for you and give you a better idea on what it will be next year.

geekette

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Re: Obama care in PA: no subsities because of resources???
« Reply #8 on: December 08, 2014, 09:34:35 AM »
Here's a list of what's included in your MAGI for ACA purposes - linky

You mentioned $68k in gains and dividends in a taxable account.  The unrealized gains (appreciation) would not be included in your MAGI (i.e. you didn't sell any shares), but ordinary dividends, even if reinvested, do count if they're not in a retirement account like an IRA or 401(k).  Still looking to find a mention of qualified dividends. 
« Last Edit: December 08, 2014, 09:37:55 AM by geekette »

seattlecyclone

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Re: Obama care in PA: no subsities because of resources???
« Reply #9 on: December 08, 2014, 11:01:50 AM »
Qualified dividends and long-term capital gains count for MAGI the same as ordinary dividends, you just don't pay as much (or any) tax on them.