I thought about this last evening while in the bath playing with my rubber duckies......
As we all know if you under shoot your income and you receive more of an insurance subsidy than you were legally allowed you have to pay it back at tax time(claw-back).... we also know that if you over shoot your income and you make less and making less would push you below 400% of FPL you will get a refund on your tax return... all that we know as fact... lets explore in more detail and for your sake I hope you can handle it....
First, according to what the law says subsidies are only allowed in the Federal Facilitated Exchange(HIX) although there will also be the private exchanges but according to the current law there is no subsidy ability in that one. We expect the private exchange to offer larger networks and stronger formulary list. These plans on the private exchanges could also offer somewhat stronger bennies as long as the meet the minn requirement of the ACA.
Now the problem... lets say you have a client that makes 94,300 a year... just a tad over 400%FPL... what do you do with them? Do you place them in the HIX and conduct the financial colonoscopy with the 21 page full investigation by the feds or do you put them in the private exchange? Think hard guys.....
OK, times up....
You probably were thinking the exact thing I was... You are above the FPL so lets go private exchange to get the better doctor network/plan
Lets say this client bought a car, house, opened an IRA or anything else that would allow a write down on income due to a deduction it puts their income at $94,100 or just below 400% of FPL. They now would be eligible for the subsidy and in this case for a family of four that's at least a 5 or 6,000$ tax subsidy right?... They get it in a tax refund... right?
Wrong.... sorry..... you placed the client in the private exchange and there are NO subsidies eligible in the private exchange... only the HIX... Guess what happens next?.. knock knock... hi, I am with Peeler and Peeler law firm and you are being sued... and you probably get a complaint for financial malpractice..
Comments? Poke holes in this...
As we all know if you under shoot your income and you receive more of an insurance subsidy than you were legally allowed you have to pay it back at tax time(claw-back).... we also know that if you over shoot your income and you make less and making less would push you below 400% of FPL you will get a refund on your tax return... all that we know as fact... lets explore in more detail and for your sake I hope you can handle it....
First, according to what the law says subsidies are only allowed in the Federal Facilitated Exchange(HIX) although there will also be the private exchanges but according to the current law there is no subsidy ability in that one. We expect the private exchange to offer larger networks and stronger formulary list. These plans on the private exchanges could also offer somewhat stronger bennies as long as the meet the minn requirement of the ACA.
Now the problem... lets say you have a client that makes 94,300 a year... just a tad over 400%FPL... what do you do with them? Do you place them in the HIX and conduct the financial colonoscopy with the 21 page full investigation by the feds or do you put them in the private exchange? Think hard guys.....
OK, times up....
You probably were thinking the exact thing I was... You are above the FPL so lets go private exchange to get the better doctor network/plan
Lets say this client bought a car, house, opened an IRA or anything else that would allow a write down on income due to a deduction it puts their income at $94,100 or just below 400% of FPL. They now would be eligible for the subsidy and in this case for a family of four that's at least a 5 or 6,000$ tax subsidy right?... They get it in a tax refund... right?
Wrong.... sorry..... you placed the client in the private exchange and there are NO subsidies eligible in the private exchange... only the HIX... Guess what happens next?.. knock knock... hi, I am with Peeler and Peeler law firm and you are being sued... and you probably get a complaint for financial malpractice..
Comments? Poke holes in this...
