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ACA Question
Old 02-04-2020, 06:09 PM   #1
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ACA Question

DGF is on ACA and has been since 2015. So far so good and although she has had three different providers she has always been able to keep the same Dr's. She does not work and being a former nurse is terrified about having to go on medicaid. So we have been converting her TIRA to Roth to get her just over the 138% of FPL so that she qualifies for subsidies, etc. ACA usually asks for income verification and we send 1099 showing conversion amount from TIRA to Roth, they approve and we go on our merry way.

In 2019 she converted the last of her Roth ($9k) so we will come up short of FPL but dont think it will be an issue as they don't ask for repayment of subsidies based on what I've been able to figure out.

For 2020 we signed her up and they asked for income verification again. As we hadn't done 2019 taxes I sent a copy of her 2018 1040 and ACA approved her subsidy and cost sharing once again.

So...the question becomes what happens when we file her 2019 income taxes and it only shows like $9k in MAGI? Will they kick her over to medicaid? Ask for income verification again?

I gifted her some appreciated stock that we sold so it created a capital gain for her of about $10k. She uses that as her spending dough. She doesn't have to pay taxes on LTG's because of no income so this a good way to get her cash without having to incur CG's on my part. Suppose I could gift her a bit more to get her up to the FPL of $18k on her MAGI. Other option would be file for SS on her ex's SS. She'll be 64 this year so only a couple of years shy of FRA anyways. Last option would be part time job.

Subsidy and cost sharing total about $1200 per month on her silver plan. Just trying to figure out the best way to get her to next year when she turns 65 and will go on medicare.

Thanks in advance for any thought anyone might have.
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Old 02-04-2020, 06:14 PM   #2
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This probably depends on the state you live in.

If I were you, I'd find a knowledgable ACA assister and ask "hypothetical" questions. She will have state-specific experience with how your state handles these types of cases. We can't guess from a distance.
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Old 02-04-2020, 07:17 PM   #3
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I don't think they're going to put her on Medicaid in 2020 for income from 2019. Maybe ask for estimate of income for 2020.

Gifting sounds like a great idea, no idea about SS.
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