Moral Quandary: Free healthcare using a loophole in state system

[samclem]

MAGI may be determined the same way it is for other purposes or it may be unique to PPACA.

If they modify the computation and exclude dividends and interest for PPACA, that will truly be the Gift of the MAGI.

 

[REWahoo]

Groooaan...

 

[MichaelB]

If they modify the computation and exclude dividends and interest for PPACA, that will truly be the Gift of the MAGI.

I'll bet on the biblical one happening again before the other one happens once.

 

[RunningBum]

I take every legal tax break and write off I can get.

When I ER'd, I didn't even consider whether I was eligible for unemployment. I'm guessing not because I got some money as part of my separation agreement.

I wouldn't consider applying for food stamps (unless my financial situation changed such that I actually needed them).

I don't know what I'll do about medical. I haven't looked too closely since I thought it was going to be struck down, or might still be repealed. I've got a good deal on a high deductible plan, $208 including dental for an individual policy. I'm still not clear whether that plan will still be available since I didn't get it until Feb 2011. I might just see how much I'll really be paying before deciding whether to take a subsidy.

I guess I just haven't decided in my mind whether it's like any other tax break, or if it's like food stamps (not that I'd qualify for those).

 

[ratto]

Any law has intended and unintended consequences, regardless it's good or bad. But once it's passed and enacted, then everyone should be treated equally per its provisions even though it might not be perfect and still needs further amendment or even total overhaul.

Having moral quandary from time to time may be a good thing, but loosing sleep might not be healthy after choosing to be treated "unequally" from the rest population if they're the majority.

 

[pb4uski]

There are numerous similar quandaries for those of us who ER with substantial net worth. For the next few years I will be living principally off of taxable account withdrawals so unless it makes sense to do some Roth conversions my taxable income will be very low since my fixed income AA is all in tax deferred accounts. As a result, I may well be eligible for tax credits towards property taxes for "lower" income people, partially subsidized health care, etc.

I've decided that I will take full advantage of any such benefits if I rightfully qualify for them. I paid a boatload of taxes during my better working years and I they design a program poorly such that I fall into it it is not my problem.

 

[teejayevans]

Just keep in mind that even if Mass. Health works the way you think it might, it won't work that way anymore in 2014. Federal law establishes the bare minimum, states can expand on it, but they can't have looser restrictions.

Florida uses both earnings and value of your investments, for food stamps, it's something like $2000 limit. The Obamacare uses adjusted gross income, but not net worth.
TJ

 

[Danmar]

I think life would be way too complicated if you kept second guessing the moral implications of laws as written. There are many inconsistencies and moral dilemmas out there. I generally ignore them and comply with the rules in effect.

 

[Mulligan]

I think life would be way too complicated if you kept second guessing the moral implications of laws as written. There are many inconsistencies and moral dilemmas out there. I generally ignore them and comply with the rules in effect.

I agree with you. Although my pension being reported as yearly income will never allow me to participate in any of these dilemmas . Take pb4's situation above. I fully agree with his view. He has already paid the taxes on that income. If he had just blown through the money yearly never saving any of it, no one would say he wasn't eligible to take advantage of the law since he would have no income or assets. But since he decided to save it instead of blow it, he now wouldn't be eligible? If the law allows it in his case, take advantage of it.