Hsa on the Exchange
- Thread starter larymes
- Start date
Yes.
But you didn't ask all the questions. Here ya go. I'll ask them for you.
Can they get subsidies? Yes, if they qualify. But if the employer-sponsored plan meets the law's definition of "affordable", then they won't get a subsidy.
Can they contribute to the tax-deductible HSA account? Yes. If the plan they purchased on the exchange is also an HSA-qualified insurance plan.
Will this cause a mess? Yes. Coordination of benefits is not fun.
Should they do this? Yes. if they have high medical bills and therefore want 2 carriers to coordinate payment of the medical expenses.
Should YOU do this? Yes. The more commission the better.
But you didn't ask all the questions. Here ya go. I'll ask them for you.
Can they get subsidies? Yes, if they qualify. But if the employer-sponsored plan meets the law's definition of "affordable", then they won't get a subsidy.
Can they contribute to the tax-deductible HSA account? Yes. If the plan they purchased on the exchange is also an HSA-qualified insurance plan.
Will this cause a mess? Yes. Coordination of benefits is not fun.
Should they do this? Yes. if they have high medical bills and therefore want 2 carriers to coordinate payment of the medical expenses.
Should YOU do this? Yes. The more commission the better.
- Thread starter
- #4
If the employee's portion of the premium for his/her self-only coverage costs LESS than 9.56% of his/her 2016 Modified Adjusted Gross Income, then it is affordable.
Definitions:
"employee's portion of the premium" means the part that the employee pays for, not the part the employer pays for.
"for his/her self-only coverage" means the premium for the employee only, not including the premium for a spouse or children.
"2016 Modified Adjusted Gross Income" means Adjusted Gross Income, plus the non-taxed portion of social security taxes, plus foreign income, plus tax-free interest. And, yes, you must estimate it for 2016 even though it is still 2015.
You guessed it. Only a politician could write something like this.
Definitions:
"employee's portion of the premium" means the part that the employee pays for, not the part the employer pays for.
"for his/her self-only coverage" means the premium for the employee only, not including the premium for a spouse or children.
"2016 Modified Adjusted Gross Income" means Adjusted Gross Income, plus the non-taxed portion of social security taxes, plus foreign income, plus tax-free interest. And, yes, you must estimate it for 2016 even though it is still 2015.
You guessed it. Only a politician could write something like this.
Last edited:
Red text should say "less".
Thanks, mwoodbrid, for catching my error! I just edited my post to say "less"
- Thread starter
- #8
Wow. And saying only a politician could write this is actually gonna help me cost this sale. Thanks that s a lot of new stuff. One more question. If it isnt less than that, what if the employer offers other insurance options that the employee is NOT currently on, that IS less than that percent?
9.56% is the 2015 threshold. The 2016 threshold is 9.66%.
The formula uses the lowest self-only employee cost of any plan available, not the plan they're on.
MBSC is correct. You use the lowest-cost plan that the employer offers to the employee, so long as it is "adequate", which is a minimum of 60% actuarial value. If the employer is in the small group market, then "adequate" is a "Bronze" plan at a minimum. If the employer is in the large group market, then the employer will know if it meets the "adequate" standard of 60% actuarial value or not.
