How the Health Subsidy Will be Processed
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Dennis Jarvis
May 3, 2013, 5:29:55 AM5/3/13
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Please consider this free-reprint article written by:
Dennis Jarvis
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Article Title: How the Health Subsidy Will be Processed
Author: Dennis Jarvis
Word Count: 565
Article URL: http://www.isnare.com/?aid=1836684&ca=Finances
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=1836684
Easy Publish Tool: http://www.isnare.com/html.php?aid=1836684
*********************** ARTICLE START ***********************
So you have looked at the qualifications for receiving a health subsidy and great news... you should be eligible! Congratulations. Now how will the actual mechanics of the new health subsidy work? Do you get money up front? Do you get a reduced insurance premium? Do you collect funds at tax time to offset the actual premium you paid? What if your income and therefore, your eligibility changes during the year. All good questions so let's look at the mechanics of how we expect the health subsidy to work. Keep in mind that each State might be slightly different but our online quote engine will take that in to account when you the new plans and rates are available online.
When does the health subsidy get applied
There was a concern in the law that if people genuinely met the under 400% of poverty requirement, they would be unable to "front" the health insurance premium even if there was a subsidy. The implementation of the law took this into account as it was a legitimate concern considering the cost of health insurance premiums these days. To account for this, the law stipulates that the health subsidy will be available up front to a person that is eligible at the time of enrollment in a Health Exchange plan that's eligible (generally the Silver plan). Let's look at an example of how this works.
Let's say we have an individual that makes $2K monthly or roughly 200% of the Federal Poverty Level. You can find the exact amounts here. Let's also assume that the cost of a subsidy-eligible health plans on the Exchange (silver) is $400/monthly. Rates of health insurance are based on age, area, and plan benefits going forward with health reform. According to the law, the person above should not pay more than 9.5% of their income towards health insurance premiums or just under $40/monthly. The percentages may actually be lower at the lower end of the 150%-400% Federal Poverty level scale but we'll go with 9.5% as a worse case. When the person enrolls in a health insurance plan and meets the health subsidy eligibility requirements, the system will automatically deduct the subsidy of $360 so that the person would pay the $40/monthly premium. This will continue according to the billing type (monthly, quarterly, etc) for the remainder of the year. What if the income changes during the period sufficiently enough to affect the health care subsidy eligibility?
Look Back Periods and Settlement
The first year's subsidy (2014) is based on 2012 taxes or the filing April 2013. Many things can change between that filing and Jan 1st 2014. A person or family's income can increase or decrease significantly. If a person's income increases significantly to where they subsidy amounts would be affected, the person may need to repay the subsidy at tax time. They may pay less than they actually received if there revised income level was under 500% of poverty, but none the less, this is a concern for people who receive an unexpected tax hit.
In the end, it's good news that people can expect to pay the net premium amount up front with their health subsidy automatically deducted but make sure to plan accordingly if your income suddenly rises during the course of the year.
- See more at: http://www.healthsubsidy.net/Health_Subsidy_Processing.html
About The Author: Dennis Jarvis is a licensed health insurance agent who focuses on helping people understand the new health subsidy available through Reform for health care. http://www.healthsubsidy.net
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=1836684
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
Message delivered directly to members of the group:
publish-the...@googlegroups.com
*****************************************************************
Please consider this free-reprint article written by:
Dennis Jarvis
*****************************
IMPORTANT - Publication/Reprint Terms
- You have permission to publish this article electronically in free-only publications such as a website or an ezine as long as the bylines are included.
- You are not allowed to use this article for commercial purposes. The article should only be reprinted in a publicly accessible website and not in a members-only commercial site.
- You are not allowed to post/reprint this article in any sites/publications that contains or supports hate, violence, porn and warez or any indecent and illegal sites/publications.
- You are not allowed to use this article in UCE (Unsolicited Commercial Email) or SPAM. This article MUST be distributed in an opt-in email list only.
- If you distribute this article in an ezine or newsletter, we ask that you send a copy of the newsletter or ezine that contains the article to http://www.isnare.com/eta.php?aid=1836684
- If you post this article in a website/forum/blog, ALL links MUST be set to hyperlinks and we ask that you send a copy of the URL where the article is posted to http://www.isnare.com/eta.php?aid=1836684
- We request that you ask permission from the author if you want to publish this article in print.
The role of iSnare.com is only to distribute this article as part of its Article Distribution feature ( http://www.isnare.com/distribution.php ). iSnare.com does NOT own this article, please respect the author's copyright and this publication/reprint terms. If you do not agree to any of these terms, please do not reprint or publish this article.
*****************************
Article Title: How the Health Subsidy Will be Processed
Author: Dennis Jarvis
Word Count: 565
Article URL: http://www.isnare.com/?aid=1836684&ca=Finances
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=1836684
Easy Publish Tool: http://www.isnare.com/html.php?aid=1836684
*********************** ARTICLE START ***********************
So you have looked at the qualifications for receiving a health subsidy and great news... you should be eligible! Congratulations. Now how will the actual mechanics of the new health subsidy work? Do you get money up front? Do you get a reduced insurance premium? Do you collect funds at tax time to offset the actual premium you paid? What if your income and therefore, your eligibility changes during the year. All good questions so let's look at the mechanics of how we expect the health subsidy to work. Keep in mind that each State might be slightly different but our online quote engine will take that in to account when you the new plans and rates are available online.
When does the health subsidy get applied
There was a concern in the law that if people genuinely met the under 400% of poverty requirement, they would be unable to "front" the health insurance premium even if there was a subsidy. The implementation of the law took this into account as it was a legitimate concern considering the cost of health insurance premiums these days. To account for this, the law stipulates that the health subsidy will be available up front to a person that is eligible at the time of enrollment in a Health Exchange plan that's eligible (generally the Silver plan). Let's look at an example of how this works.
Let's say we have an individual that makes $2K monthly or roughly 200% of the Federal Poverty Level. You can find the exact amounts here. Let's also assume that the cost of a subsidy-eligible health plans on the Exchange (silver) is $400/monthly. Rates of health insurance are based on age, area, and plan benefits going forward with health reform. According to the law, the person above should not pay more than 9.5% of their income towards health insurance premiums or just under $40/monthly. The percentages may actually be lower at the lower end of the 150%-400% Federal Poverty level scale but we'll go with 9.5% as a worse case. When the person enrolls in a health insurance plan and meets the health subsidy eligibility requirements, the system will automatically deduct the subsidy of $360 so that the person would pay the $40/monthly premium. This will continue according to the billing type (monthly, quarterly, etc) for the remainder of the year. What if the income changes during the period sufficiently enough to affect the health care subsidy eligibility?
Look Back Periods and Settlement
The first year's subsidy (2014) is based on 2012 taxes or the filing April 2013. Many things can change between that filing and Jan 1st 2014. A person or family's income can increase or decrease significantly. If a person's income increases significantly to where they subsidy amounts would be affected, the person may need to repay the subsidy at tax time. They may pay less than they actually received if there revised income level was under 500% of poverty, but none the less, this is a concern for people who receive an unexpected tax hit.
In the end, it's good news that people can expect to pay the net premium amount up front with their health subsidy automatically deducted but make sure to plan accordingly if your income suddenly rises during the course of the year.
- See more at: http://www.healthsubsidy.net/Health_Subsidy_Processing.html
About The Author: Dennis Jarvis is a licensed health insurance agent who focuses on helping people understand the new health subsidy available through Reform for health care. http://www.healthsubsidy.net
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=1836684
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
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