Kevin Knauss: Health, History, Travel, Insurance
Posts related to the ACA Premium Tax Credit issued by Covered California.
The 1095-A Health Insurance Marketplace Statement doesn’t give a clue on how the Monthly Advance Payment of Premium Tax Credit is calculated. Even though consumers who purchased health insurance through the Marketplace entered their Modified Adjusted Gross Income (MAGI) into the enrollment system, this income in not listed on the 1095-A they receive. The MAGI […]
One of the common complaints during tax season for individuals and families who are set to receive a federal refund is that the government got to use their money for a year before refunding it to them. Now, households who have to repay excess ACA tax credits find themselves in the situation where they got to use a […]
Anyone who did not have health insurance for a period of more than three months during 2014 will have to pay a penalty on their IRS federal tax return. This penalty is also known as Affordable Care Act Shared Responsibility Payment. The ACA has given taxpayers who went without having health insurance for a period during […]
Consumers who purchased a health plan through Covered California 2014 may lose their monthly tax credit in 2015 if they don’t give permission to allow the state exchange to verify their income through the federal hub. The sudden loss of the Advance Premium Tax Credit in 2015 applies to consumers who did not give Covered […]
Ms. B had been faithfully making her premium payments for her Kaiser health plan she purchased through Covered California during open enrollment in 2014. When she went to use her health plan, Kaiser told her that the plan was not active. But the enrollment summary of her Covered California account shows she is enrolled. It […]
Individuals and families who have enrolled in health plans through Healthcare.gov, or a state exchange like Covered California face new challenges as they report income and household changes. Families reporting changes to household size and income may also be triggering changes to their health plan. These changes may result in the entire family becoming eligible for Medicaid, being shifted into a different Enhanced Silver plan or losing the Advance Premium Tax Credit all together.
In what has become routine for Covered California, they alerted agents to another CalHEERS enrollment website problem late on a Friday afternoon. The latest email notified agents that the system has been calculating the wrong Advance Premium Tax Credit (APTC) on submitted applications. While the Covered California email blast wasn’t real specific, it sounds like the APTC number is wrong when the applicant confirms the health plan purchase, but correct in the “Eligibility Results” page.
The new Affordable Care Act health plans offered through Covered California will help many people move out of an expensive COBRA plan and into an insurance plan with lower premiums. However, COBRA is considered “employer offered” health insurance that meets minimum essential benefits and value. Because of this many people and families on, or offered, COBRA will NOT be eligible for tax credits to reduce the monthly premiums of Covered California plans.
I have determined that the United States will constantly have retarded progress towards fixing our problems because many states are more interested in protecting their own turf than working as a unified body.
Even without any mandated plans under the ACA, businesses have found it necessary to add and drop plan offerings in an attempt to stem the escalating premium increases. What isn’t changing is that health insurance premiums will still be deducted pre-tax on payroll.
