I'm not focusing on ACA. I am focusing on why you think you should get a subsidy.
Maybe, but it is still my preference.
Have looked at this before. Ok interesting that so many of them in insured are subsidy or Medicaid eligible-almost all.That is a gap that, according to KFF, affects about 0.4% of the population.
A Closer Look at the Remaining Uninsured Population Eligible for Medicaid and CHIP | KFF
This issue brief examines the characteristics of the remaining uninsured population who are eligible for Medicaid or CHIP using 2022 national survey data. Despite improvements in coverage, 25.6 million nonelderly people remained uninsured in 2022.www.kff.org
No, that's the % of your income that you would have to pay towards the SLCSP (second lowest cost silver plan). If that number is less than the SLCSP, that's the amount of subsidy you get towards any ACA plan available to you. If it's equal or more, you get no subsidy. So a 901% family is a lot less likely to get a subsidy than a 401% family. If they do get one, it'd be a lot less than the 401% family.
Ok. Trying to figure a few things out. As mentioned before, will go on ACA starting in July after DW's insurance stops (she retires). If subsidy above 401% goes to zero in 2026, but I can go well above 401% in 2025 and still get subsidy for the 6 months we will be on it, then I may take a larger distribution in 2025 to then take a lower amount in 2026 to keep the subsidy for 2026.
Yes and the clawback of those credits is tiered, so less than actual cost (as long as you continue to qualify for subsidies.
That's a good way to do it.healthsherpa.com.is.a good site.
For 2025 her full year income will be a factor, so her subsidy might be zero. Also it will be a new plan with a deductible reset. Cobra often becomes competitive to finish the year in which one retires for these issues. Then she would switch to the ACA with the open enrollment for 26.
Looking at a real life example, 57 yo Male in PA 18503 would get a $500 subsidy. At 901% there would be $0 subsidy because the SLCSP is 8.2% which is lower than 8.5% and therefore no subsidy.
Got information on COBRA at $1,885/month for both of us if we were to choose that for the rest of this year.
Structuring income to qualify for ACA subsidies is financially wise because it allows individuals to reduce out-of-pocket health insurance costs legally and efficiently. Since subsidies are based solely on income—not assets—strategically managing taxable income (e.g., through Roth conversions, capital gains timing, or tax-deferred withdrawals) can maximize savings without affecting long-term wealth. It’s simply smart planning to use the rules as they’re written to preserve capital and reduce unnecessary expenses.
That includes us. There are actually quite a few folks on this forum without an ACA subsidy.
Yup. I’m a member of that distinguished group as well. The nice part of that is because there was no subsidy, moving to Medicare brought a pretty substantial reduction in health care premiums along with a very low deductible. Even with IRMAA Medicare is still less expensive and easier to use.
I agree with this. This is not the point. If you go back through the thread, you may get it. The person gave an example of someone with $2 million dollars not getting a subsidy. It came across as if it wasn't fair that that person was not getting a subsidy. I asked why the person thought one should get a subsidy in that scenario.Structuring income to qualify for ACA subsidies is financially wise because it allows individuals to reduce out-of-pocket health insurance costs legally and efficiently. Since subsidies are based solely on income—not assets—strategically managing taxable income (e.g., through Roth conversions, capital gains timing, or tax-deferred withdrawals) can maximize savings without affecting long-term wealth. It’s simply smart planning to use the rules as they’re written to preserve capital and reduce unnecessary expenses.
You should get it if you planned wisely.
... and I put it the reported data onto the website, and cost was less than $400 per month with $1300 per month in subsidies.
True. Moving to Medicare brought significant relief.
) is in the neighborhood of $12,000.
You state that you are all for legally managing income and such to minimize taxes, right? How about managing income to maximize tax credits? Are you ok with that? The same thing, right?
