ACA Subsidies: Determined by Projected 2014 Income?
The federal and state Affordable Care Act Exchanges are now open, but there is still a lot of confusion about how subsidies are determined. We did some extensive research on the subject, and want to share the details of our mission for the new Bronze, Silver, Gold, and Platinum plans.
How to Determine Your Income for ACA Plans
We created an article before about how the Affordable Care Act and your MAGI (modified adjusted gross income) determine your “actual” income for figuring out your subsidies. But do you use your 2012 tax paperwork? 2013? Or projected 2014?
As far as we can tell from three sources at Centers for Medicare and Medicaid, Covered California, and the Kaiser Family Foundation, it is your projected 2014 income that you use to qualify for 2014 ACA subsidies. Other sources, like the representative at H&R Block, were unclear as to which year is used. So you can see it’s not just you that finds this confusing, but also tax professionals. As we learn more we will update this article.
What You Don’t Include as Income for ACA Subsidies?
Per Covered California’s application you do not include certain other incomes such as child support, veteran payments, or Supplemental Security income payments. It was originally thought child support payments would be included, but this is new information to us. This may also only be a California thing, so as stated above we will update as we learn more on the subject.
What ACA Subsidies are Available?
There are two types of subsidies available to those who qualify:
- Premium subsidies: to help with your monthly payment
- Cost-sharing subsidies: to help with your deductibles, coinsurance, and copays when seeking medical care
To learn if you qualify for subsidies call 800-930-7956 or contact Medicoverage.