Subsidy 2015

[FLM2]

10/18/2014

I finally figured out how the local Benchmark (second lowest priced Silver) plan fits in to the overall subsidy calculation. All I can say after reading this article is Thank Goodness for Computers!

REF: Premium Assistance Tax Credit Calculation
ac

What this means, in a nutshell, is that as premiums increase, in particular, for the 2nd lowest Silver plan in an area, subsidies will increase on a dollar for dollar basis (with some very minor tweaks because of changes to the FPL annually, which could change the %age allowed for payment of premiums at a specific income level).

This can have a major impact on final net premiums, particularly when a benchmark plan is replaced by another one-as an example, in my local area, last year's benchmark plan (Florida Blue) is going up over 20% for 2015 and will most likely be replaced by an Aetna plan. For those who enrolled in the benchmark plan last year they will see a very large premium increase this year and will be deserting the sinking Florida Blue ship in droves come November 15th.

 

[somarco]

I am in a tree stand an tried without taking off gloves

Poacher. Obamacare hunting season doesn't begin for another 5 weeks.

 

[rugerred]

Poacher. Obamacare hunting season doesn't begin for another 5 weeks.

No you don't understand, with comission so low I have to hunt for food. Then I hunt obamacareies.

 

[somarco]

I understand.

When funds get low l hunt for food at Trader Joe's instead of Whole Foods or Kroger.

 

[rugerred]

I understand.

When funds get low l hunt for food at Trader Joe's instead of Whole Foods or Kroger.

They frown on you shooting there.

 

[somarco]

They frown on you shooting there.

Yeah, well they also suggest you wear pants. Beginning to think these places aren't customer friendly.

 

[kgmom219]

yeah, well they also suggest you wear pants. Beginning to think these places aren't customer friendly.

.................tmi!!!

 

[pcbinsurance]

"...and will be deserting the sinking Florida Blue ship in droves come November 15th....."
******************
Somehow, I think FL Blue will survive the "sinking ship" but it's good fluff to read.

 

[rugerred]

Yeah, well they also suggest you wear pants. Beginning to think these places aren't customer friendly.

That pants thing is getting a little out of line, let's boycott.

 

[RayNY]

Keep in mind, due to the way this is computed, if the reference silver is undercut for the new year (either a new product/company, or a rate decrease), the subsidy can actually drop, even if all other plan premiums go up. This happened here in NY, reference silver went down, while plans on average went up. Everyone gets a smaller subsidy to apply to more expensive plans.

Of course, the FPL limit increases every year ($45,960 last year, $46,680 next year) and the allowable percentage goes up as well (in AC's link there is a handy chart). Even if premiums didn't change at all, you'd be paying about 1.5% more.