Sense and Sensibility

[ameneses54]

I need some math gurus to explain this conundrum.
I have customers who are paying less than 3 bucks a month for an ACA Silver plan. They all received a letter from the Insurance Company informing them that the premium would be $60 or more in 2015.
As a good agent I helped with the renewal, choosing the same plan without any reduction or change in income and they end up paying the same 2014 premium and in some cases less ($0).
Doesn't make any sense!

 

[unic.consulting]

Just be happy they're paying less than what the insurance company said.

 

[Yagents]

U...........don't............understand...........the ......law............if.........u.........r........asking..........the ..........question

 

[AllenChicago]

Obama Clause is coming to townnnn. Highly subsidized clients are now starting to understand and experience why so many "poor" people are doing so well under Obama.

 

[jstocking]

I need some math gurus to explain this conundrum.
I have customers who are paying less than 3 bucks a month for an ACA Silver plan. They all received a letter from the Insurance Company informing them that the premium would be $60 or more in 2015.
As a good agent I helped with the renewal, choosing the same plan without any reduction or change in income and they end up paying the same 2014 premium and in some cases less ($0).
Doesn't make any sense!

What is happening here is all tied to the plan the subsidy amount is extrapolated from. In 2014 the benchmark plan was x dollars, so the subsidy amount a person was given was based off of that number. For 2015 the plan either increased in cost, or it changed to a different silver plan. In my state, both occurred. The marketplace will NOT adjust the subsidy calculation to the 2015 levels if someone passively enrolled.

The end result being a double-whammy for consumers. An uprate on their premium, plus last years subsidy numbers (which have been based on cheaper plans in my area than the 2015 plans in my area). And they were nice enough to give us 1 month to re-subsidize everyone we signed up last year. Yay!

End result for the consumer ends up being "actively re-enroll or you will pay the price!"

 

[Yagents]

In AZ, the gov't screwed up our market by funding a Co-Op, and lowered their price so much on a second silver plan, with only 2 hospitals in downtown Phoenix, that it drove down subsidies. Of course, nobody outside of the "city" can buy that plan.

Those who passively re-enroll actually keep a higher subsidy amount. Of course, they will owe that difference back come tax time.

This law is all regional, the opposite occurred in FL where it makes things affordable with subsidies. In AZ, it's simply unaffordable if you actually want your nearest hospital in network, or even have Children's hospital in network.