3 ms·

Yes -- subsidies are tied to income, not assets (specifically, modified adjusted gross income [MAGI]). There are reasonable arguments around the equity of this

by daguar 13y ago

Yes -- subsidies are tied to income, not assets (specifically, modified adjusted gross income [MAGI]). There are reasonable arguments around the equity of this, but, as you describe, it actually opens a big door for wishing to try a more entrepreneurial venture -- especially for those with health conditions.

DennisP 13y ago
Interesting. What about medicaid though? From what I've seen there's a minimum income to get the regular plans on the exchange, and below that you have to go with medicaid (assuming there aren't net worth qualifications for that).
- daguar 13y ago
  Medicaid does have some asset tests. Below 138% of the federal poverty level, you would qualify for Medicaid. [1] If you had ethical qualms about it (or couldn't pass the asset tests) you can absolutely purchase a plan on the Exchange -- you just wouldn't receive a subsidy. [1] In states that have opted to expand it, see my other comment.
  - DennisP 13y ago
    Ah good. One last question, if you don't mind: how does the subsidy work for a freelancer, who doesn't know his annual income until the year's over?
    - nknighthb 13y ago
      It's structured as part of your taxes. If you got too much subsidy during the year, you'd pay the difference next April, if you got too little, you'd get the difference back as part of your refund (or use it to offset the rest of your bill). You're supposed to be able to elect to take a lower subsidy than you expect to qualify for, if you want to make sure you don't end up with an oversized tax bill next April. Presumably this will be part of some form when buying coverage on the exchanges. We'll know what it looks like in a couple days...
    - daguar 13y ago
      Good question -- you estimate what your income will be when you sign up, and then report actual income later (your subsidy will be adjusted to your actual income). https://www.healthcare.gov/will-i-qualify-to-save-on-monthly-premiums/ https://www.healthcare.gov/will-i-qualify-to-save-on-monthly...

by daguar 13y ago

DennisP 13y ago

Interesting. What about medicaid though? From what I've seen there's a minimum income to get the regular plans on the exchange, and below that you have to go with medicaid (assuming there aren't net worth qualifications for that).

daguar 13y ago
Medicaid does have some asset tests. Below 138% of the federal poverty level, you would qualify for Medicaid. [1] If you had ethical qualms about it (or couldn't pass the asset tests) you can absolutely purchase a plan on the Exchange -- you just wouldn't receive a subsidy. [1] In states that have opted to expand it, see my other comment.
- DennisP 13y ago
  Ah good. One last question, if you don't mind: how does the subsidy work for a freelancer, who doesn't know his annual income until the year's over?
  - nknighthb 13y ago
    It's structured as part of your taxes. If you got too much subsidy during the year, you'd pay the difference next April, if you got too little, you'd get the difference back as part of your refund (or use it to offset the rest of your bill). You're supposed to be able to elect to take a lower subsidy than you expect to qualify for, if you want to make sure you don't end up with an oversized tax bill next April. Presumably this will be part of some form when buying coverage on the exchanges. We'll know what it looks like in a couple days...
  - daguar 13y ago
    Good question -- you estimate what your income will be when you sign up, and then report actual income later (your subsidy will be adjusted to your actual income). https://www.healthcare.gov/will-i-qualify-to-save-on-monthly-premiums/ https://www.healthcare.gov/will-i-qualify-to-save-on-monthly...