IRS Changing APTC with Out Notice

[AllenChicago]

The Government's back-door method(s) for destroying this phase of the ACA, to clear a path for Single-Payer, is coming along as Senator Obama promised in 2001. That's why the White House and HHS publicly say that they have no alternative "plan B" if the Supreme Court strikes down the subsidies. They're hoping that it does! The more chaos, the quicker Americans will begin to beg for the Government to rescue them.

 

[CHUMPS FROM OXFORD]

Real pain. At least a few every day. Most customers have no idea.

 

[sman]

I am getting multiple reports from clients that after they have filed their taxes for the 2014 tax year that their APTC is being reduced or increased based off of their tax filing.

WTH?!?

The application process states "What do you expect to make in 2015?" Not..."Hey, what do you think you're going to make in 2K15 but we're going to check your 2K14 taxes and make adjustments as we see fit!"

Anyone else had this reported yet? This is just starting to happen and many clients haven't figured it out until the auto draft comes out of their account....


This is totally insane.

Just wondering if it's easier to type a K than a 0?

 

[Tkruger]

Just wondering if it's easier to type a K than a 0?

.........................

 

[YouGotMyMoney]

One of the disclaimers everyone agrees to is causing this issue, something about using their tax info for the next 5 years to income data or something.

 

[kgmom219]

One of the disclaimers everyone agrees to is causing this issue, something about using their tax info for the next 5 years to income data or something.

No.

Yes, you are required to give the FFM access to 5 years of tax returns, but that is NOT the issue. Idiocy is the issue.

Last Nov/Dec an enrollee (and spouse) were required to determine their 2015 income. Its has NOTHING to do with the 2014 tax return that was just filed.

So, if you made $75K in 2014, but lost your job in December, you could estimate that your income for 2015 would be $15K. (Or whatever.) So you get a subsidy based on the $15K.

THEN the marketplace sees the 2014 income via the IRS and pulls the subsidy. Since no one in the US ever changes jobs/gets laid off/starts a business, they are making the assumption that your income would be the same in 2015. Stupid.

Scenario #2: You are a seasonal employee and most of your income is made in the 1st quarter for the entire year. The FFM (via the IRS or Social Security, I'm not sure which) sees that you made $20K in Quarter 1 via payroll taxes. They then ASSUME you will make $80K for 2015, so they yank the subsidy.

This is SO much fun!

 

[FLM2]

This, like so many other things related to the Marketplace, is a disgrace.

We aren't talking about consumer goods here, we are talking about healthcare.

People are going to lose coverage for no reason and run the risk of enormous bills because they can't afford the much higher premiums and let coverage lapse.

We have a government bureaucracy run amuck, I'm disgusted...

 

[MaryDallas]

YAGENT: none of us will say a word for fear of loosing our certification. let me remind you of the letter sent to NAHU(I think) that stated we needed to cease spreading "lies" about ACA back in 2010, 2011

These are not lies: it is the truth, unfortunately.

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That is exactly what is happening, kgmom. And yes, it is sheer idiocy. Although the income is to be estimated for 2015 now that taxes have been filed for 2014 that is what is being considered.

Who thunk up this run amuck mess, anyway?

 

[hockeyday]

So what happens if someone files an appeal? How long does that process take, I have a family that has mailed in the required info certified mail and up loaded to the marketplace and they say that they still don't have it, in this case they have lost their full credit... this is a mess,

 

[houcoogster]

Making it worse, the Marketplace is not even sending out notices of APTC loss in a timely fashion, maybe 3 weeks later, and the letter is very generic with NO specifics.

Someone needs to take this debacle to the press. Fricken joke

The Obamacare ON exchange business cycle:

Write the biz
Save the biz
Lose the biz

Rinse and repeat

I've pretty much eliminated the second step. I'm at....

Write the biz
Lose the biz

Rinse and repeat