The Next Screwing for Consumers in Florida

[FLM2]

According to Florida Blue (current road show), anyone who makes less than 100% of the FPL will not be eligible for a subsidy for health insurance in 2014.

The reason? Florida opted out of the Fed Medicaid expansion.

It would be easy to blame this all on people who aren't making any money, but let's say that you are unemployed for a good part of 2013 or 2014-career change, lost your job, etc, etc, etc.

You claim a subsidy for your 2013 health insurance and then, in 2014 or 2015 your income is below 100% FPL-it's AGI so it's after a bunch of deductions.

The next step will be the IRS wanting back the subsidy, in full.

What a mess this is-so many people will have huge tax bills in 2015 it will boggle the mind...

 

[Yagents]

First, most "deductions" above the line are capital losses, IRA and HSA contributions, those with low income won't have these deduction expenses in all probability.

Those with low income (below 250% FPL), the maximum clawback is only $600 , in fact, they may get a larger tax refund if at 101% vs. 250%

FL is talking about having a special session to expand medicaid later this year

 

[AllenChicago]

According to Florida Blue (current road show), anyone who makes less than 100% of the FPL will not be eligible for a subsidy for health insurance in 2014.

Right.. subsidies are only for 100% to 400% of FPL individuals and families. Those under 100% will be in the same boat they're in now apparently. Hopefully FL will act to expand Medicaid, as YAgents suggests they might.

 

[FLM2]

Those with low income (below 250% FPL), the maximum clawback is only $600 , in fact, they may get a larger tax refund if at 101% vs. 250%

That isn't what the Florida Blue person said in the session, he said that if they fell below 100% they would get charged back for the full amount.

The $600 is fine with me and makes my life easier but I doubt that Rick Scott can be trusted to do anything with Medicaid that doesn't further line his pockets.

Follow up:
Bill is correct-I read the IRS code, in section 36B, here is the exact verbiage:
(B) Limitation on increase
(i) In general In the case of a taxpayer whose household income is less than 400 percent of the poverty line for the size of the family involved for the taxable year, the amount of the increase under subparagraph (A) shall in no event exceed the applicable dollar amount determined in accordance with the following table (one-half of such amount in the case of a taxpayer whose tax is determined under section 1 (c) for the taxable year):
If the household income (expressed as a percent of poverty line) is: The applicable dollar amount is: Less than 200% $600
At least 200% but less than 300% $1,500
At least 300% but less than 400% $2,500.

Tax exempt interest, by the way, is added to AGI in determining the subsidy as is tax exempt Social Security income

Bill, I've given you credit above for pointing this out but, at the same time, your use of 'deductions' when referring to AGI as an afterthought isn't fair or representative.

For people in career transition or starting a new business, business losses are an integral part of the AGI calculation, as is Alimony, Capital Losses, etc.

A person or family in transition could easily fall below 100% FPL and lose their subsidy in full-their only recourse would be to lie on the health insurance application and then pay back the $600.

It's still a mess, I think we can both agree on that or would at least hope so.