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PPACA question
Old 10-13-2013, 11:12 AM   #1
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PPACA question

Say you have a married couple. The wife is employed, earns $44,000 and receives single insurance coverage from her employer (family coverage is too expensive). The husband is employed, earns $17,800 and has no insurance through employer.

The husband will be able to obtain insurance through the Minnesota exchange January 1.

The question is this: is eligibility for subsidized premiums for the husband based on both incomes, or would they be able to change their filing status to married filing separate and only the husband's income would be used to determine if he receives the subsidy?

I thought I read somewhere where both incomes would be used, but I wanted to get other input in case I was mistaken.

My sister is in this situation. Both incomes would make them barely ineligible for any subsidy, whereas only his income would make the insurance almost completely subsidized.

Sorry if this has been covered before, but I am trying to help them out.
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Old 10-13-2013, 12:17 PM   #2
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I remember reading somewhere that a married couple needs to file a joint return to get tax credit or subsidy.

So, I just did a google search using the words "aca subsidy married couple joint return" and confirmed the above fact.
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Old 10-13-2013, 01:57 PM   #3
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NW-Bound is correct. You cannot receive the premium subsidy credit if you are married filing separately.

See IRC 36B(c)(1)(C)
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Old 10-13-2013, 02:47 PM   #4
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Thanks. That is what I thought but I wanted a second opinion.
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Old 10-13-2013, 04:52 PM   #5
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My understanding is that if the wife's employer offers family coverage, and if the employee-only coverage for the wife is considered affordable under ACA, the husband is not eligible for any subsidy, regardless of how expensive it would be to add him to her plan. The so-called "family glitch."
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Old 10-13-2013, 07:02 PM   #6
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Quote:
Originally Posted by NW-Reader View Post
My understanding is that if the wife's employer offers family coverage, and if the employee-only coverage for the wife is considered affordable under ACA, the husband is not eligible for any subsidy, regardless of how expensive it would be to add him to her plan. The so-called "family glitch."
I don't know the exact details of this or if it's correct, but this is why we explicitly wanted the church my wife serves to take the council action (recorded in the minutes) to offer ONLY employee-only coverage. I figured that would bulletproof it, in any event.
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