Health Exchange Problems with Income Verification

[DAYDREAMER]

I'm having issues with Washington health exchange accepting documents I submitted as income verification. Our income for 2018 will be dividends from recently purchased Wellesley funds and wife's unemployment compensation, totaling 42k for the year.

I submitted wife's unemployment summary we recieved from Washington Unemployment as proof of her 2018 income $18k. I submitted a signed statement that we will be receiving approximately $24K from dividends.

I recently recieved notice from Washington Health Care that my documents are insufficient!!!!

Our financial situation has changed dramatatically from 2017 due to ER in 2018. 2017 W2's are irrelevant for forecasting 2018 income.

Any advice on what to do next?

 

[SheitlQueen]

Call them. I had the same issue but talking to someone on the phone solved the problem.
Like you, my income went down radically after I retired and they were looking at the previous years income. A phone call took care of it.

 

[MRG]

I went through this in 2014 on the federal sight. I'd call.

 

[Dtail]

Call them. I had the same issue but talking to someone on the phone solved the problem.
Like you, my income went down radically after I retired and they were looking at the previous years income. A phone call took care of it.

+1
Same conceptual issue for me in 2017. Have to just call them, potentially a manager who has some knowledge of tax information and how it is captured in the MAGI calculation.

 

[DAYDREAMER]

Thank you Sheitlqueen for the advice. I forgot to mention I called them Saturday. The call helper redid our online income data by removing the average dividend income and only keeping wife's unemployment, because that is the only income we are recieving for the current month. Looks like the exchanges are trying to manage the subsidy amount on a monthly basis, even though their website says to average an income if it is recieved on an irregular basis. When I recieve my quarterly dividend, I'm suppose to report it then.

Update, I just got an email saying that my revised income data has been accepted and my subsidy increased by $90. I'm not a fan of this monthly subsidy variation that will happen as my known income will change throughout the year. Hell with it, I will take the increased subsidy, and let it wash out at end of year when I reconcile my taxes.

Glad I only have to deal with this one year. Next year we qualify for employer paid retirement health care.

 

[bingybear]

I decided not to fight it. I'll pay the full rate and get it back at the end. That is unless I decide that roth conversions are better long term

 

[DAYDREAMER]

I decided not to fight it. I'll pay the full rate and get it back at the end. That is unless I decide that roth conversions are better long term

I was thinking same thing if the verification process became a PIA. The subsidy is to big a carrot this year ($9000 subsidy) to consider Roth conversions this year. Our ages are 52 and 54, so plenty of time for the conversions.

 

[joeea]

I recently recieved notice from Washington Health Care that my documents are insufficient!!!!

Our financial situation has changed dramatatically from 2017 due to ER in 2018. 2017 W2's are irrelevant for forecasting 2018 income.

Any advice on what to do next?

In the letter you receive, they will always give you a list of documents which would be sufficient. You could choose an alternative method from their list.

If that doesn't seem reasonable, call them and speak to a representative.

When I retired, it took several go-rounds of letters and phone calls to get my "I will be retired and thus have no income" claim validated.

Just be persistent.

 

[GTFan]

I decided not to fight it. I'll pay the full rate and get it back at the end. That is unless I decide that roth conversions are better long term

Only problem with that approach is the loss of Silver CSRs if you are eligible income-wise.

 

[bingybear]

Only problem with that approach is the loss of Silver CSRs if you are eligible income-wise.

true enough. If you go too far into CSRs you can invalidate an HSA compatible plan. I use the HSA as a savings vehicle to pay for health care later in life including LTC.
I've done nothing to my investing style to optimize for the ACA. Right now I'm trying to understand if the subsidy is the mouse in the room that is going to be squashed by the RMD elephant that will eventually enter.

My medical expense is low even with my pacemaker. I've likely paid more for dental (crowns) in the past few years. If I had higher medical bills.. then maybe CSRs might be a better place. But without changing my investing, I can only get so low. I just don't see that it makes sense over the long haul.

 

[GTFan]

You're right, by keeping income low we're likely going to end up with more RMDs - our solution will be to give the excess to charity. By then we'll probably have enough in SS alone to live off of and most/all of the portfolio will end up with charity. It's certainly not going to the kids if we can help it, at least the bulk of it that is. Not that I don't think they deserve it, just don't buy into the legacy deal and we've told them that.

 

[bingybear]

that is an other option.