Retired and Just Enrolled in ACA .. $0 Premium. Question.

[GenXguy]

It is correct. I did not talk about hitting the cliff, because I never reach it. I mentioned it because I just aware of it being around $75 - $77K. I'm aware it's not a cliff until 2024

Yeah well, the subsidy is really that. I pay 0. And after re-checking, the subsidy is $1695 (not $1630), so bigger

And that's for just you? I noticed you never mentioned a spouse.

 

[PaunchyPirate]

And that's for just you? I noticed you never mentioned a spouse.

He does in the a post a couple above yours. He has a dear wife (DW).

 

[RunningBum]

It is correct. I did not talk about hitting the cliff, because I never reach it. I mentioned it because I just aware of it being around $75 - $77K. I'm aware it's not a cliff until 2024

Yeah well, the subsidy is really that. I pay 0. And after re-checking, the subsidy is $1695 (not $1630), so bigger

You said

Pretty much aware that if you go over $75K - $77K, there's no subsidy.

Why? There is no subsidy cliff, and at the earliest it will return in 2026 (not 2024). This is the part I was questioning.

 

[GenXguy]

He does in the a post a couple above yours. He has a dear wife (DW).

OK, I see he did finally mention that in the middle of that last post. That would explain the a much bigger subsidy for the given income.

 

[captain3d]

62k income minus standard deduction maybe?

 

[orbops]

He does in the a post a couple above yours. He has a dear wife (DW).

finally someone has defined what DW means. I see it on so many posts but wasn't sure what it meant.

 

[GenXguy]

62k income minus standard deduction maybe?

ACA uses MAGI, so the standard deduction is not subtracted to get MAGI. In fact, MAGI includes both taxable and non-taxable SS benefits as well.

 

[GenXguy]

finally someone has defined what DW means. I see it on so many posts but wasn't sure what it meant.

https://www.early-retirement.org/fo...slang-frequently-used-on-the-forum-34884.html

 

[2retireearly]

Yes, it is my zipcode. I guess we're cheap. In my Eligibility document that has been approved, it is clearly written that my estimated salary is $62K for 2023.
And I have a subsidy of $1695 (which I thought was $1630). Premium is $1534. So, I recalculated and even at $68K salary, I still pay $0.00.
By the way, this is for me and DW.

I'm attaching screenshot so you guys can see. I was able to reach Aetna yesterday, and they said I do not have to input my card or pay anything at $0.00.

When I did the ACA years ago the limit to get best subsidy and to not be eligible for medicaid, was about $20000, here in Virginia, for a single person. I'm totally blown away that now the band for 0 subsidy is about 63k for married. Wow! But my question is, on the screenshot of your quote what is the monthly income of $1695 mean? That would be only a ann income of 20340, which, of course would do that max subsidy...So, where did 1695 come from?

 

[xlf11]

When I did the ACA years ago the limit to get best subsidy and to not be eligible for medicaid, was about $20000, here in Virginia, for a single person. I'm totally blown away that now the band for 0 subsidy is about 63k for married. Wow! But my question is, on the screenshot of your quote what is the monthly income of $1695 mean? That would be only a ann income of 20340, which, of course would do that max subsidy...So, where did 1695 come from?

$1695 is his max monthly credit, but he chose to apply only part to his bronze plan (not standard silver plan).

 

[2retireearly]

Oh duh... thanks....I still am very surprised the subsidy is so high, that I completely missed where he has said 100 times the subsidy was 1695....and I made that an income! ha!

 

[Sunaimer]

Are you using Medicaid? And is the coverage good? Providers?

 

[xlf11]

Oh duh... thanks....I still am very surprised the subsidy is so high, that I completely missed where he has said 100 times the subsidy was 1695....and I made that an income! ha!

Subsidy has improved since 2021. But I would probably pick a Silver plan instead to fully utilize the credit and a better coverage if possible.

 

[Murph]

So do premiums. And age makes a difference. I don't know cyber's age or household size, so I was using some different ages for test purposes. Besides, only a few dollars is close to $0. The reason my premium would be so much higher is due to single person with $100,000 MAGI despite retiring in June with a maxed out 457B. Oh well, COBRA will do for this year, and I should get a better subsidy next year.

Exactly what I did. I retired in January, but final paycheck and unused personal time check plus my monthly withdrawals from the retirement account put me over the limit for ACA. COBRA to the rescue.