ACA for an out of state college kid?

[SecondCor521]

Hi all,

Somewhere around here someone made a comment and based on that I thought I should investigate putting my middle kid on the ACA.

Currently he's on the school plan (SHIP) for this fall semester. The fall semester premium was $1,724. He's my tax dependent. My targeted income for next year will be 193% of FPL.

Simple questions first:

1. Is it possible to put him on the ACA in his out-of-state state (Oklahoma)?
2. Is it a good idea, bad idea, or it depends?
3. Things to consider and look out for?

Thanks!

 

[Bamaman]

Have you considered pricing regular BCBS insurance? It's not ACA with a sky high deductible.

I pay $353 for regular BCBS health insurance for my 31 year old daughter, including dental.

 

[SecondCor521]

Have you considered pricing regular BCBS insurance? It's not ACA with a sky high deductible.

I pay $353 for regular BCBS health insurance for my 31 year old daughter, including dental.

Not yet, but I could add it to my list of things to investigate. ;-)

Right now his two siblings and I live in Idaho and are on a Silver ACA plan with CSR.

The first thing I don't know is how it works where I have one tax family of four (me plus my three kids) but one of them (my middle kid) might be off on his own ACA plan (or BCBS plan) in Oklahoma.

I have no idea how that all splits out between tax family/tax families, PTCs, CSRs, etc.

 

[ncbill]

Oldest kid went to the university less than two miles down the road so they stayed on the family plan for their first year (left that school for a service academy so from then on has been covered under Tricare)

For the youngest kid we picked the school's plan the first year which was only ~$100/month, a bargain for a plan equivalent to an ACA Gold-level plan.

But now their scholarship covers tuition & all fees including the fee for the school's health plan.

Probably will continue to maintain family coverage while the last kid is still in school since it is not much more than employee plus spouse.

 

[samcat]

Can he go on ACA on his own if he is your dependent?

 

[SecondCor521]

Can he go on ACA on his own if he is your dependent?

I have no idea. I think I'm going to have to call around and ask questions.

 

[MichaelB]

Your son has three options. He can remain in your policy, he can get a school policy, or he can get his own ACA policy. See here https://www.healthcare.gov/young-adults/college-students/

Living in a different state from your parents: You have two options:

Apply for coverage with your parent or stay on their plan. Before you enroll or decide to stay on a parent’s plan, be sure to read the plan's coverage documents and review the provider network carefully so you know how the plan covers care delivered in the state you go to school.

Apply yourself in the state you go to school. You may want to do this to enroll in a plan that better meets your needs in the state you go to school. When you fill out your application, note:

You'll still be included in your parent's tax household, even though you're applying separately. They'll fill out or update their application and state that you don't need health coverage. Your income will still be counted because Marketplace savings are based on expected income for all tax household members, not just the ones who need insurance.

You'll do the same: When you fill out your own separate application, state that your parents and the other members of their tax household don't need health coverage. But you'll include their income on your application.

The cost of both your plan and your parent's plan may be reduced with a premium tax credit and extra savings based on the whole household's income, not just yours.

When you move to or from the place you live and go to school, you may be eligible for a Special Enrollment Period allowing you to enroll outside the yearly Open Enrollment Period.

Simple questions first:

1. Is it possible to put him on the ACA in his out-of-state state (Oklahoma)?
2. Is it a good idea, bad idea, or it depends?
3. Things to consider and look out for?

The first thing to check is your current policy, to see if the provider network covers Oklahoma. If it does, that’s probably your best option.

If not, compare the cost and coverage of the university policy with a separate ACA policy. Make sure the student health center is in-network for they ACA policy.

 

[cathy63]

You'll still be included in your parent's tax household, even though you're applying separately. They'll fill out or update their application and state that you don't need health coverage. Your income will still be counted because Marketplace savings are based on expected income for all tax household members, not just the ones who need insurance.

You'll do the same: When you fill out your own separate application, state that your parents and the other members of their tax household don't need health coverage. But you'll include their income on your application.

The cost of both your plan and your parent's plan may be reduced with a premium tax credit and extra savings based on the whole household's income, not just yours.

It seems like if you're using cost sharing, then having two separate ACA plans, both based on the entire family's income, would reduce or eliminate that benefit. You'd also get less advance premium tax credit on each plan, but would be able to recoup that when you file taxes.

 

[SecondCor521]

Thank you, @MichaelB and @cathy63!

My policy is very much a local state policy in terms of network, and only covers emergency treatment in Oklahoma.

I'll remember to ask if the student health center accepts ACA policies.

Based on MichaelB's response, it seems like my son getting his own ACA policy there wouldn't affect my CSR's - I already have him listed as a "tax purposes only" dependent - i.e., he adds to my family size but doesn't get ACA coverage here. It sounds like he would get CSR's there too, since the ACA calculations are based on family size, family income, and living in the lower 48, which is the same here in Idaho and there in Oklahoma.

He might or might not get a subsidy. I assume that I would just combine his policy premiums and any APTCs with mine and report it all together on Form 8962. Something else to check on...

Thanks again!

 

[SecondCor521]

He might or might not get a subsidy. I assume that I would just combine his policy premiums and any APTCs with mine and report it all together on Form 8962. Something else to check on...

It turns out this is the case, and it is done the way you would think it would be done.