Do a Midyear Checkup on Your Health Care Subsidy

Maybe you thought your work was done once you bought health insurance for the year on one of the government-run exchanges.

Insurance policyNot quite. The IRS and other tax experts say now is a good time to revisit that purchase to make sure you’re getting the federal premium assistance you’re entitled to. Whether you’re getting too little - or too much and have to repay it later - there’s still time to contact the exchange and correct any errors for this year.

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Under the Affordable Care Act, consumers with income of up to 400 percent of the federal poverty level are eligible for a subsidy that lowers premiums, sometimes by thousands of dollars.

TurboTax provides a calculator to help consumers calculate their correct subsidy. The government’s health website can also help you figure this out.

If your subsidy seems to be incorrect, contact the exchange via your online account or by phone at 800-318-2596.

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A change in income isn’t the only reason to contact the exchange to re-evaluate your subsidy midyear, says Sacha Adam, product line manager at TurboTax. Notify the exchange if you have any major life changes, such as having a baby, getting married or moving to another locale, because the size of the subsidy is influenced by the number of family members and zip code, he says.

Photo: DNY59/iStockphoto

 

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2 comments
barkway
barkway 5pts

oh goody; another annual busy-work administrative chore mandated by govt.

vc3401
vc3401 5pts

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