@Sherpa—yes, I would in your situation. I also do not understand the max OOP requirement. The language does seem clear that your plan’s deductible must apply to all care before anything is reimbursed. Preventive care is the exception to this.
My 18 year old son has a HDHP and I am trying to figure out if I can open the HSA, even though he is the insured. Have not figured this one out yet, but I am thinking it might not be possible.
@CT1417, is your 18-yo son your tax dependent? If he is, then I think maybe you can get the tax deduction for the HSA.
Yes, I have been doing it all along. As long as the math works out it’s fine. The HSA contribution is subtracted directly from income to reduce AGI.
Yes it has to be explicitly stated. Not necessarily in plan name – but in the plan description. Not all high deductible plans are HSA-eligible.
Yes, he absolutely is my tax dependent, and that is why I started out thinking this might be possible. (He pays for own socializing/spending money, but that’s about it!)
I need to make some more calls as today’s were inconclusive. Not sure that an accountant would know, and I got nowhere when calling the organization that sets up the HSA accounts.
We’re getting a 2018 subsidy because we managed to keep our 2018 income below the subsidy cutoff level. We’re re-enrolling for the same plan for 2019 with the realization that next year our income will most likely exceed the threshold.
Here’s my question: Assuming that some time in 2019 we realize our income will exceed the cutoff level, does it make any difference (interest, penalties, etc.) if we notify the exchange vs. waiting until we file our 2019 return the following year?
I’m not certain about this, but I think you’re required to report to the exchange if you know your income will exceed the cutoff.
Is there no way you can bring down your MAGI (eg by stuffing money into retirement accounts) to drop your income?
You are supposed to report changes in income to the exchange, but it doesn’t make any difference come tax time. If you are above the income cutoff, you’ll have to pay your subsidy back – but no penalties or interest assuming you pay on time. Just a potential for a big tax bill down the line.
We decided to switch to aa Bronze level plan from the Silver level plans we’ve been using the past several years. For whatever reason, Anthem was offering a Bronze with a pretty low deductible.
Today, December 15 (tomorrow for me, because I live in California and it’s ten of ten Friday night), is the last day of open enrollment for most people.
Just because I know it will come up, a Texas judge just invalidated the entire ACA for the whole country. He did not, however, enter an injunction to make his ruling take effect. Therefore, the ACA is still in force, just like it was yesterday. Get enrolled if you want insurance.
But it means that, for 2020 and beyond, we will be back to worrying about pre-existing conditions like those listed in https://www.bcbstx.com/producer/pdf/tx_uw_guide.pdf , right?
No, it means the case is going to get appealed.
I don’t want this to devolve into a forbidden political discussion, but if the US Supreme Court invalidates a law because of a specific problem or issue, Congress can amend whatever provisions created the problem & pass a new law. So a potentially adverse decision from the court would not be the end of the line; just the beginning of a new chapter.
@sherpa. Techincially yes, you notify them at the point it seems the income will exceed the threshold. This means subsidies (none?) and costs can change for that part of the year. But it does spare you the later accounting and a large payback.
If you will go over the 400% limit, you’d need to pay back all the subsidies. No cap on the payback, at that level.
I have a question–it is very noobie and I know I should read through the whole thread, but we are under time pressure and I didn’t know I would be asking it (it’s for family):
D just had baby. Is still on her own insurance with baby, but that will end soon (I’m not sure when, but she’s staying home with baby for a while). Possibly ending after Jan 1. SIL has insurance but adding D and baby will cost a huge amount.
Two part question: if her insurance ends after Jan 1, can she then use ACA as it is a qualifying event (even though she’s eligible for spouse’s insurance?) And how would it work with a QE–apply how much ahead of time, and how to avoid a gap-especially necessary with newborn care.
And – probably should have asked first, but my assumption is that she and baby could do ACA though they have the option for spouse’s insurance—is that correct? I know that spouse’s income would still factor in, so not sure they’d get subsidies, but looks like it would still be cheaper than spouse’s family plan.
I just found out they are still working this out, or I would never impose like this on my CC friends. Hope this is clear, and thanks in advance! (they are smart people but a little overwhelmed).
A good suggestion, but all of our income is passive, so funding retirement accounts is off the table. We’re utilizing HSA accounts, which helped keep,us under the threshold in 2018. But if 2019 turns out the way I expect, losing the subsidy won’t be too painful.
@garland they might try consulting one of the tax expert places. I know some of our local tax preparers are experts on the ACA. IMHO, going on the husband’s plan is probably a better idea.
Thanks, @sylvan8798 That was going to be the plan, but it’s apparently around 700 a month to add them, which seems really high.
Unfortunately, it’s December 15 and Saturday (plus new baby) so I think they waited too long to get tax expert help. I wish I’d heard this sooner than last night. They’re on top of these kinds of things normally, but a number of complicated situations came up for them at the same time (such as but not just new baby) and this one seems to have gotten short shrift.
@Garland , I think this article is a good answer to your question. My recollection was that if you are eligible for some kind of insurance, you have to take it - unless it is “unaffordable”. According to the article, my recollection is not 100% accurate in that you can sign up for an ACA policy, but you won’t be eligible for a subsidy. I remember when my son (after 1 year of work) was offered insurance by his employer he had to take it even though his subsidized ACA policy was cheaper. As I told him, “C’est la vie”
$700 for spouse and kids is low. Many plans would be above $1000 for those dependents.
Sounds like your kid is on an employer plan while on maternity leave? Or some type of continuation coverage, ie; COBRA? When those are up, it should be a qualifying event, at least so far as the SIL employer insurance is concerned. What I would do, is take a look at the ACA plans today and see if they will be cheaper (subsidy or not). They need to consider both premiums and out of pocket costs. My gut tells me they would be better off as dependents under SILs plan. Good luck.
Thanks, folks. Spouse doesn’t make a lot, so an extra 8400 plus what he already pays seems huge to me. But I’m lucky in having better than normal insurance so I guess I don’t know.