ACA Subsidy question

[gbstack]

I currently have Obamacare that includes my spouse and daughter! It’s very possible my daughter will be moving to North Dakota in August and at this time she has no earnings!

My current subsidy is based on the three of us! If she does move will my subsidy be prorated for the time my daughter was included or will the new lower subsidy be for the entire year!

Thanks in advance for your help!

 

[Ian S]

IIRC, it's pro-rated on a monthly basis. You might want to confirm that with either your state or federal health insurance exchange. I do know the tax form that gets filled out for premium support has a section where monthly info is entered.

 

[Unpaintedhuffhines]

Agree with Ian S! I think that it's prorated for the time she is on your insurance! Once she is off of your insurance, your base rate should go down, but the subsidy should change as well!

 

[Texas Proud]

I remember when filling out last years taxes they asked about who was on what insurance for each month of the year.... so I would bet it is prorated by month...

You will need to go online and make the changes... I failed to do that an it took me a year to get it fixed... just informing your insurance company is not enough... just sayin.....

 

[GrayHare]

Agree with Ian S! I think that it's prorated for the time she is on your insurance! Once she is off of your insurance, your base rate should go down, but the subsidy should change as well!

+1!

 

[MBSC]

Congratulations to your daughter for spreading her wings. If the move is temporary, such as school, she may be able to remain a tax dependent on your return and remain on your policy. However, there may not be any out of state network providers depending on the plan. https://www.healthcare.gov/income-and-household-information/household-size/

Otherwise, you will need to report the change to your state/federal health insurance exchange. The current policy will be cancelled and a new policy issued reflecting a premium for the remaining two enrollees. A family of two earning less than roughly $63,700 can still qualify for a premium subsidy. The new subsidy, if any, will be based on the new family size and new premium for the remainder of the year.

If she is no longer a dependent, a portion of the January-August subsidy actually belongs to your daughter. In most cases, the parents will just keep the entire subsidy but you do have to report that decision. See Instructions for Form 8962, Table 3, Step 3 for more information.

 

[gbstack]

If I decide to purchase the college health plan can I keep my daughter on my Obamacare plan?


Thanks for all the great information!

 

[papadad111]

My sons university cancelled their voluntary student health plans effective September 2015 and points everyone to the ACA market place.

Suspect all states will be doing same soon, so as to increase insurance pool of young and healthy premium paying people !!!

Can not answer question on having both policies (one for each state ) insurance cover - I doubt you can double dip on getting a subsidy ... But being covered in two states may be possible by having two separate policies.

 

[EastWest Gal]

Consider getting a separate catastrophic plan for your daughter. They're quite inexpensive, even without the subsidy. I looked into one for my out of state student son when I applied for ACA insurance. It turned out keeping the 3 of us on a bronze plan with national coverage was a bit cheaper for us.

Most if not all universities cancelled their student health plans because they weren't compliant with the ACA in terms of scope of coverage.