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Question About The ACA Subsidy

Posted by on Oct. 2, 2013 at 11:23 AM
  • 4 Replies

 A friend is asking this on FB, and none of us know the answer.  I thought I would bring it to the wise ladies here.

The healthcare subsidy is a tax credit, correct?  That means that you have to pay the full premium that is listed, and you will get the subsidy amount at the end of the year when you file your taxes, right?  Or is that wrong?  Does anyone know?  My friend is saying that her monthly silver plan premium would be just over $1000 a month, but her subsidy would be about $700 a month, leaving her bottom line monthly obligation at just under $300 a month.  So, does she pay the $300 or the $1000 every month?

by on Oct. 2, 2013 at 11:23 AM
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Replies (1-4):
LindaClement
by Thatwoman on Oct. 2, 2013 at 11:25 AM

Generally a subsidy is applied immediately.

Don't know about in this case...

supercarp
by Silver Member on Oct. 2, 2013 at 11:32 AM

If your income is less than 250% of the federal poverty level, then you can get a monthly stipend to pay your premium with. If your income is less than 400% of the federal poverty level you get a tax credit when you pay your income tax.

If you income is above 400% of the FPL then you can do better by getting your health insurance from a private insurer. See an insurance agent. You don't pay more for insurance by having an agent.

JakeandEmmasMom
by Platinum Member on Oct. 2, 2013 at 11:33 AM
1 mom liked this

 

Quoting LindaClement:

Generally a subsidy is applied immediately.

Don't know about in this case...

 That was my original thought, but she is saying that says both subsidy and tax credit. 

I can't even get onto my own state's exchange yet, so I can't see exactly what it says for myself.  :-/

JakeandEmmasMom
by Platinum Member on Oct. 2, 2013 at 11:35 AM

 

Quoting supercarp:

If your income is less than 250% of the federal poverty level, then you can get a monthly stipend to pay your premium with. If your income is less than 400% of the federal poverty level you get a tax credit when you pay your income tax.

If you income is above 400% of the FPL then you can do better by getting your health insurance from a private insurer. See an insurance agent. You don't pay more for insurance by having an agent.

 I will let her know this.  Thank you!

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