<p>I make about $8,000 per year, but I have to pay $1,200 per semester for health insurance, and I do not qualify for a subsidy. I'm over 26. If I buy insurance on the exchange, I could opt out of the school insurance, but the problem is I can't get a subsidy for the exchange unless I make at least $11,500, at which point my Pell grant would be reduced. My state does not expand Medicaid.</p>
<p>I thought I could escape ObamaCare by making under the standard deduction. I did not see this one coming. Why would they force low earning students to buy health insurance at full price?</p>
<p>What do you think of this plan? I tell the exchange this November that I predict I will make $12,000 next year. I then get the subsidy, since the law just settles the difference at tax time. When tax time comes, IRS calculates how much I was overpaid in subsidies: $2400 if I make less than $11,500. But, since I make under a certain amount, IRS penalizes me a maximum of $300, not the full $2400. $300 per year is a whole lot less than $1200 per semester. Think that will work?</p>
<p>And I’m not lying since I’m just taking a guess at how much I’ll make next year, under the premise that IRS will settle the difference per the limits in the law. My guess, by definition, is not a lie. After all, I might get a raise next year. Never know.</p>
<p>Actually, you won’t even have to pay the $300-- that only applies for people who are above poverty line. If you apply for health insurance estimating a $12,000 income, and then the next year file a tax return showing only $8,000 – you will be treated as if your income was exactly 100% of the FPL. </p>
<p>There’s not an “overpayment” because that only occurs if you earned MORE than the amount you claim, not less. </p>
<p>The $300 overpayment might happen if you got a subsidy based on estimated income of $12,000 but then ended up earning $13,000 instead. </p>
<p>Also, you don’t have to lie - a better choice would be to come up with a plan for yourself to earn an extra $350/month for yourself with a part-time job, or odd jobs you can do (gardening, babysitting, pet care, tutoring, etc.). That’s not a whole lot of money to set as an earnings goal if you think about it.</p>
<p>I’m not saying that you have to actually end up earning that. I’m saying that if you come up with a plan, it will benefit you because you can always use a little extra pocket money – and you won’t have to worry about anyone accusing you of lying if you can show that you were putting in the effort to make more money, even if you come up short at the end of the year. And who knows – maybe you will make more than anticipated.</p>
<p>And the OP NEEDS that extra income anyway. His loan eligibility runs out after this term, and he has three more after that. Earning more money would be beneficial,</p>
<p>As Calmom says. My son is currently on the exchange with a subsidy even though he would qualify for Medicaid. I prefer that he has insurance that is not Medicaid since a lot of doctors and places refuse to take it whereas there appears to be less of that problem with the carrier that we selected on the exhcange. He would get the subsidy based on what the stated minimum income level is for that coverage. Just as Calmom says. You just don’t get recognitions for the lower income. </p>
<p>In our case, it’s a good thing we went that way, as my son will go over the Medicaid amounts. </p>
<p>I just wish I had learned all this last enrollment period. I applied on the exchanges, and told them I thought I would earn $8,000. They told me I don’t qualify for a subsidy. I gave up and figured I’d be under the income cut off for a penalty, so I’d just not get insured. That is when I got the surprise of my school saying I have to buy health insurance, and I’m past the enrollment period. So I have to come up with $1200 this fall semester. I will definitely get on the exchange in November. Right now I’m uninsured and being very careful.</p>
<p>Traveller, you might be able to enroll on the exchange right now outside the open enrollment period simply by reporting a change of income. Are you working more hours over the summer? The point is that if you tell the exchange that you will be earning $12,000 instead of $8000,that makes you eligible when you weren’t eligible before, so that’s one of the exceptions that lets people enroll - plus of course it saves you $1200 fall semester. Here’s the link to determine if you are eligible to enroll now: <a href=“HealthCare.gov”>HealthCare.gov;
<p>When stating my income to them, how much information will they ask for? How much proving must I do and how much is just my estimate of how much I’ll make?</p>
<p>I don’t know – but there’s really no downside. Either they ask for verification or they don’t - if they do ask for verification, you might provide most recent paystubs (if they will accept that) – if you are working more hours over the summer, then that would tend to be a higher number - so they might accept that as a way to project total income. That is, if you could document $1000 income for one month, that would support a projection of $12K for the year. But they may just accept your word for it – such a statement that you have increased your work hours and anticipate earning more than previously projected. </p>
<p>Ok. Will do. I cleared 12000 in 2013, and I am working more this summer. So I will apply.</p>
<p>I read that they do verify income, but mostly just under threat of owing come tax time. Even if I had to repay the subsidies, it would be no higher that my school tuition plan, and I could put the taxes on my credit card to buy time.</p>
<p>Again, you won’t have to repay subsidies unless your income exceeds estimations. If you earned $12K in 2013, you will be able to use your 2013 return to pass verification – they aren’t going to ask for a whole lot of details. They have a job to do-- they might need some sort of documentation to point to-- but their job is NOT to play detective and try to disqualify people. The type of people they worry about and want to root out would be people who have higher incomes (above the 400% mark) and are trying to qualify for subsidies that they never will be entitled to. There really is not much value in doing that anyway, because there will be a reconciliation for that come tax time, but I can see the real possibility of self-employed people or people with investment opportunities doing that to manage cash flow. It’s essentially an interest free loan from the IRS, and it makes a fairly big difference for older people like me with higher premiums – for example, in my case it’s about a $5000 difference of subsidy vs. no-subsidy. </p>