Health Insurance Tip

[VacationForever]

I have a nagging question so I will ask the experts here. If one spouse, say the husband is on Medicare, collecting Social Security, taking money out of IRA (Required Minimum Distribution) and the other spouse has little income to her name, not eligible for Medicare yet and also not eligible to collect SS yet. When using family income she would not qualify for subsidy under ACA. Can she use her individual income, which is very low, to get a subsidy?

 

[staceyeileen]

I have a nagging question so I will ask the experts here. If one spouse, say the husband is on Medicare, collecting Social Security, taking money out of IRA (Required Minimum Distribution) and the other spouse has little income to her name, not eligible for Medicare yet and also not eligible to collect SS yet. When using family income she would not qualify for subsidy under ACA. Can she use her individual income, which is very low, to get a subsidy?

No ACA subsidy is based on "household" income (MAGI) regardless of how many people in the household will be covered under the policy.

 

[ottawasquaw]

This is something I never thought of in all the years my husband was the breadwinner. It is obvious to me now that I am in this business.

When only one spouse has employer insurance available, it is often not the best option to sign the other spouse and the children onto the employer group plan.

Please understand that all of your posts are true for 2014, in your state, and in your part of the state. Health insurance has been evolving for years and changed dramatically for all of us more recently.

It's simply not correct to assume that the sorts of individual policies you now have available to sell under ACA were available a few years ago. They were not in my state. The demand, and more importantly, the laws were not there.

Also know that pricing is still evolving. I said last year that it would look different this year and, boy, was I right for where I live. It's still a state by state product. I won't be surprised if the product and pricing look quite different, again, a year from now.

 

[ottawasquaw]

No ACA subsidy is based on "household" income (MAGI) regardless of how many people in the household will be covered under the policy.

I am wondering how this can be. I haven't used the subsidy myself, but my understanding is that it is based on the tax return?

I'm no income tax expert, but I thought the subsidies are driven and adjusted by one's tax return.

 

[bogey21]

Oh for the good old days. Family coverage used to be pretty simple for those of us whose employer provided health insurance. Now for many it is a lot more complicated and often a lot more costly.

George

 

[rapmarks]

I am wondering how this can be. I haven't used the subsidy myself, but my understanding is that it is based on the tax return?

I'm no income tax expert, but I thought the subsidies are driven and adjusted by one's tax return.

so if married and filing separately would not be subjected to spouse's income?

 

[staceyeileen]

I am wondering how this can be. I haven't used the subsidy myself, but my understanding is that it is based on the tax return?

I'm no income tax expert, but I thought the subsidies are driven and adjusted by one's tax return.

I'm not sure what you're asking. Yes, it's based on the income you estimate you will file on your taxes in 2015. The question was asked about a married couple, specifically a wife asking if she can only count her income or if she needs to include her husband's income as well. The answer is that both incomes are considered when calculating the subsidy.

 

[staceyeileen]

so if married and filing separately would not be subjected to spouse's income?

The law actually doesn't allow you to get the subsidy and also file separately.

http://www.irs.gov/uac/The-Premium-Tax-Credit

Eligibility

In general, you may be eligible for the credit if you meet all of the following:
buy health insurance through the Marketplace;

are ineligible for coverage through an employer or government plan;

are within certain income limits;

do not file a Married Filing Separately tax return (unless you meet the criteria in section 1.36B-2T(b)(2) of the Temporary Income Tax Regulations, which allows certain victims of domestic abuse and spousal abandonment to claim the premium tax credit using the Married Filing Separately filing status); and

cannot be claimed as a dependent by another person.


Filing Status

If you file your tax return using the filing status Single, Married Filing Jointly, Head of Household (including married individuals who qualify to use the Head of Household status) or Qualifying Widow/Widower, you may be eligible for the premium tax credit if you meet the other criteria. If you are married and you file your tax return using the filing status Married Filing Separately, you will not be eligible for the premium tax credit unless you meet the criteria in section 1.36B-2T(b)(2) of the Temporary Income Tax Regulations, which allows certain victims of domestic abuse and spousal abandonment to claim the premium tax credit using the Married Filing Separately filing status.

 

[geekette]

I feel this is why so many of my colleagues are moving on toothier companies. I'm a high achiever, type a personality and my innovation and talent are being wasted at this company and when you factor in that this company has sub-parhelath care benefits its not wonder they have a very high burn and churn rate.

Sugar, dust off the resume. January is a major hiring month and there isn't a lot of reason to remain underappreciated and underbenefitted. I left a job in July that was both of those, but not to the extent you are experiencing.

Life is too short, go where you will feel fulfilled and appreciated. Were I you, my first stop might be current employer's biggest competitor. Don't wait for an advertised opening as there is always room for one more good person, and "stealing you" could well be a very easy decision to make.

Best of luck!!