Estimating Income question - ACA

[AStewart]

I'm sure someone has asked this on this forum before so I apologize, but I could not find the answer. I am retiring this April and will be applying for healthcare coverage on the healthcare exchange around that time. When estimating my income to determine if I qualify for any subsidies, do I estimate my income for the rest of 2019 (which will only be from my investments) or do I include the income I made while working thus far Jan - April? Thanks.

 

[Bir48die]

All income for the calendar year

 

[Spock]

You have to include all income. Check if you can get COBRA for the first stretch until your annual income is lower next year.

 

[jim584672]

ACA is calendar year, Medicaid is going forward monthly.

 

[Dtail]

You have to include all income. Check if you can get COBRA for the first stretch until your annual income is lower next year.

+1 otherwise you are not truly maximizing your subsidies for the year and could find cheaper Cobra rates.

 

[EastWest Gal]

Compare COBRA costs vs unsubsidized ACA costs. ACA likely cheaper.

 

[pb4uski]

I'm sure someone has asked this on this forum before so I apologize, but I could not find the answer. I am retiring this April and will be applying for healthcare coverage on the healthcare exchange around that time. When estimating my income to determine if I qualify for any subsidies, do I estimate my income for the rest of 2019 (which will only be from my investments) or do I include the income I made while working thus far Jan - April? Thanks.

Yes, include earned income from working for 2019.

 

[USGrant1962]

Compare COBRA costs vs unsubsidized ACA costs. ACA likely cheaper.

Not in my experience for the same coverage. ACA prices are age-adjusted, though less so than the real costs, and increase for every dependent. Generally Megacorp medical plans (COBRA) are not age adjusted and are usually priced as "family" as soon as you get to 3 people. But every State is different when it comes to ACA so the point is well taken - compare.

 

[orchid55]

Yes you should definitely compare. For my husband and me, COBRA was about $400 cheaper than the unsubsidized ACA and had a nationwide PPO network, lower deductibles and co-pays. The ACA policy had a narrow network, higher deductible and maximum out of pocket.

 

[pb4uski]

My experience was the inverse... when I retired in 2012 HDHI COBRA was $900/month for two and a similar HDHI policy in the individual market was $556/month... that was in a no underwriting, no age rating state.... both included my PCP and our local hospital in-network.

 

[oscar1]

All income. If you ER’d July 1, Jan-Jun income counts. This is especially important because you will qualify for ACA subsidies below 400% of Fed poverty level (~$48k for single guy, more if you have addtl family members). But if you go over the 400% number by $1, you could be looking at repaying any ACA subsidies that were paid on your behalf to your insurance co. ER’ees On ACA exchanges typically manage their income very carefully. LTCG, unemployment benefits, Roth conversions, dividends, all count toward ordinary income.

 

[jpeter1093]

Following since I'm also retiring in April this year.

 

[Livefree]

You may want to max your 401k if possible as this will lessen your taxable income dollar for dollar.



I Retired in June of 2017 and put as much as possible into mine. I also had expensive health Insurance premiums. Those 2 items reduced my taxable income, and that along with projected income for the rest of the year, got me subsidies.


They will probably want a pay stub proving your taxable income when you retire. I sent them my last 2 stubs..