who is paying for cost sharing subsidy?

[ERhoosier]

I'm not sure I fully understand all the nuances of the question, but since you direct it to me, I'll do my best to respond. Income needs to be verified by the exchange. Prior year tax returns and data from IRS and SSA will be used. If those are not sufficient, Equifax data will also be consulted. If projected income still cannot be verified using these tools the exchange navigators can document it using other sources and proceed. These need to be verified after three months, however, and then again until either eligibility is confirmed by actual earnings or the policy is discontinued. You can find more detail here http://www.healthreformgps.org/wp-content/uploads/income-verification-8-6.pdf

While the written ACA application does ask those with variable income streams for what they "think" their total 2014 income will be, my attempt at sarcasm was clearly misguided

Obviously there are significant penalties (inc possible perjury) for willfully mis-stating income, and (hopefully) effective methods for detection & enforcement.

 

[Fermion]

While the written ACA application does ask those with variable income streams for what they "think" their total 2014 income will be, my attempt at sarcasm was clearly misguided

Obviously there are significant penalties (inc possible perjury) for willfully mis-stating income, and (hopefully) effective methods for detection & enforcement.

Having $1,200,000 in a stock account generating $14,000 of dividends, good.

Having $300,000 in a 5 year Penfed CD ladder paying $9,000 of interest, ok.

Getting cost sharing on a silver plan while doing the above: priceless

 

[ERhoosier]

Having $1,200,000 in a stock account generating $14,000 of dividends, good.

Having $300,000 in a 5 year Penfed CD ladder paying $9,000 of interest, ok.

Getting cost sharing on a silver plan while doing the above: priceless

This raises an interesting question. What if one loses their six-figure job Jan 1, 2014 (Corp shutdown, ER, disability, whatever). No pension or SS, just investment portfolio similar to Fermion's example. How might Marketplace handle that situation? Worst case seems like you would deal with it on 2014 income tax filing, but paying full Silver premium/deductibles/co-pays could pose a serious cash flow issue for the year.

 

[Fermion]

This raises an interesting question. What if one loses their six-figure job Jan 1, 2014 (Corp shutdown, ER, disability, whatever). No pension or SS, just investment portfolio similar to Fermion's example. How might Marketplace handle that situation? Worst case seems like you would deal with it on 2014 income tax filing, but paying full Silver premium/deductibles/co-pays could pose a serious cash flow issue for the year.

I am going to assume that you would just show that you are unemployed and have little income and sign up for cost sharing and subsidy. I am hoping we hear a few stories about this on ER.org because there are a number of people doing ER in 2014 that will be getting silver plans.

 

[NoMoreJob]

I am going to assume that you would just show that you are unemployed and have little income and sign up for cost sharing and subsidy. I am hoping we hear a few stories about this on ER.org because there are a number of people doing ER in 2014 that will be getting silver plans.

In the example above you would report that you are retired and that your income source is investments. Total income would be 14,000 dividends plus 9,000 interest for $23,000 total. For a household of two this would put you under the $23,265 limit for 150% FPL and qualify you for both cost sharing and subsidy for a silver plan. You can make up to 250% FPL and still be eligible for cost sharing although as your income increases your premiums increase and cost sharing decreases.