Silver plans with cost sharing -
100-150 FPL Actuarial value for cost sharing 94%
150-200 FPL Actuarial value for cost sharing 87%
200-250 FPL Actuarial value for cost sharing 73%
FPL = (Federal Poverty Level)
When someone signs up for ACA they have to estimate income. Now if the estimate is low they may have to pay back some subsidy at tax time. From what I have read they would NOT have to pay back the cost sharing amounts. So why not just purposefully underestimate the income to say 149 FPL (when you know it will be 249 FPL in reality, for example) to get the better cost sharing and then pay back the extra subsidy amount at tax time? Would someone get in trouble for doing this?
100-150 FPL Actuarial value for cost sharing 94%
150-200 FPL Actuarial value for cost sharing 87%
200-250 FPL Actuarial value for cost sharing 73%
FPL = (Federal Poverty Level)
When someone signs up for ACA they have to estimate income. Now if the estimate is low they may have to pay back some subsidy at tax time. From what I have read they would NOT have to pay back the cost sharing amounts. So why not just purposefully underestimate the income to say 149 FPL (when you know it will be 249 FPL in reality, for example) to get the better cost sharing and then pay back the extra subsidy amount at tax time? Would someone get in trouble for doing this?