Partial year ACA premiums

[craigwillie]

Tried a search but couldn't find a topic for this question.

My wife is currently receiving a ACA subsidy on a Bronze plan. She will transition to Medicare on October 1st.

Is the subsidy amount received still based upon the full year of income, or is there some calculation done for a partial year of ACA coverage?

 

[GenXguy]

Tried a search but couldn't find a topic for this question.

My wife is currently receiving a ACA subsidy on a Bronze plan. She will transition to Medicare on October 1st.

Is the subsidy amount received still based upon the full year of income, or is there some calculation done for a partial year of ACA coverage?

Full year.

 

[cathy63]

Yes, the subsidy is based on your household's full year income.

 

[Spock]

It's based on full year income, BUT, your subsidy amount may change.
My wife went on Medicare 3/1.
Based on tips found here, I had split our ACA policies into two individual policies when we enrolled in ACA last year for 2024, instead of 1 joint plan. I was expecting to just cancel her ACA policy. Nope. Despite same household income my subsidy amount went down considerably. Wife going on Medicare was considered a life change for ME, so I was able to re-apply and chose a new plan with a different (lower) premium that was covered by the subsidy.
The process was way more complicated than it needed to be.

 

[scrabbler1]

I am a little curious about this but won't become more interested until next January when I receive my 1095-A form and wonder if I will have to complete the monthly part of Form 8962. I am about to move (on Monday) from my regular ACA plan to New York's Essential Plan which doesn't involve any ACA subsidies (I will pay zero premiums, YAY!).

 

[jim584672]

I am a little curious about this but won't become more interested until next January when I receive my 1095-A form and wonder if I will have to complete the monthly part of Form 8962. I am about to move (on Monday) from my regular ACA plan to New York's Essential Plan which doesn't involve any ACA subsidies (I will pay zero premiums, YAY!).

There is nothing to reconcile with Form 8962 and the Essential Plan since it doesn't involve subsidies. It is just like Medicaid Managed Care plans.

 

[scrabbler1]

There is nothing to reconcile with Form 8962 and the Essential Plan since it doesn't involve subsidies. It is just like Medicaid Managed Care plans.

I was referring to the first 3 months of this year while still on a Silver ACA plan with a large premium subsidy.

 

[sengsational]

I am a little curious about this but won't become more interested until next January when I receive my 1095-A form and wonder if I will have to complete the monthly part of Form 8962. I am about to move (on Monday) from my regular ACA plan to New York's Essential Plan which doesn't involve any ACA subsidies (I will pay zero premiums, YAY!).

I think you will have to do the monthly part.


The 1095-A's when both of us were on ACA had both our names in "Part II" and the figures in all months of "Part III" were the same, all the way down.


The 1095-A for the year when one turned 65 had ONE name in "Part II" and the figures in "Part III B" (SLCSP) changed (went down by about half) in the month Medicare started. In my case, columns A and C were the same for all months.

 

[jim584672]

I had a partial year when I first retired, the early months on a Silver plan and the later months on Medicaid. Whole year income is used, the Silver months get reconciled, the other months are blanked out.

 

[5Miler]

DGF just went online today to enroll in SS and Medicare to start in July. She is currently on ACA and has been managing income pretty stringently for the past 8 years. As ACA income is yearly she has decided to let loose the purse strings after she starts Medicare and let her income increase to no more than 300% of Fed Poverty Level and just pay $950 subsidy repayment cap for the year.