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Do a Midyear Checkup on Your Health Care Subsidy

Posted By Eileen Ambrose On August 22, 2014 @ 2:42 pm In Money Talk | No Comments

Maybe you thought your work was done once you bought health insurance [1] for the year on one of the government-run exchanges.

Insurance policy [2]Not quite. The IRS [3] 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.

>> Birthday Freebies and Discounts [4]

Under the Affordable Care Act, [5] consumers with income of up to 400 percent of the federal poverty level [6] are eligible for a subsidy that lowers premiums, sometimes by thousands of dollars.

TurboTax provides a calculator [7] to help consumers calculate their correct subsidy. The government’s health website [8] 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.

>> Get discounts on financial services with your AARP Member Advantages. [9]

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 [10]

 

Also of Interest

 

See the AARP home page [15] for deals, savings tips, trivia and more.

 


Article printed from AARP: http://blog.aarp.org

URL to article: http://blog.aarp.org/2014/08/22/take-a-mid-year-check-up-on-your-health-care-subsidy/

URLs in this post:

[1] health insurance: http://www.aarp.org/health/health-insurance/?intcmp=AE-BLIL-DOTORG

[2] Image: http://blog.aarp.org/wp-content/uploads/2014/08/iStock_000008188602Small.jpg

[3] IRS: http://www.irs.gov/uac/Newsroom/IRS-Now-is-the-Time-for-a-Mid-Year-Premium-Tax-Credit-Checkup

[4] >> Birthday Freebies and Discounts: http://www.aarp.org/money/budgeting-saving/info-2014/birthday-freebies-and-discounts-photo.html#slide1?intcmp=AE-BLIL-DOTORG

[5] Affordable Care Act,: http://www.aarp.org/health/affordable-care-act/?intcmp=AE-BLIL-DOTORG

[6] federal poverty level: http://familiesusa.org/product/federal-poverty-guidelines

[7] a calculator: https://turbotax.intuit.com/health-care

[8] health website: https://www.healthcare.gov

[9] >> Get discounts on financial services with your AARP Member Advantages.: http://www.aarpfinancial.com/content/aarpfinancial/home.html?intcmp=AE-BL-MON-DISC

[10] DNY59/iStockphoto: http://www.istockphoto.com/profile/dny59

[11] 3 Sneaky Schemes That Scammers ‘Bank’ On: http://blog.aarp.org/2014/08/22/3-sneaky-schemes-that-scammers-bank-on/?intcmp=AE-ENDART1-BL-REL

[12] What’s the Maximum Social Security Benefit?: http://www.aarp.org/work/social-security/info-07-2010/maximum_monthly_social_security_benefit.html?intcmp=AE-ENDART2-BL-BOS

[13] Fight fraud and ID theft with the AARP Fraud Watch Network.: http://www.aarp.org/money/scams-fraud/fraud-watch-network/?intcmp=AE-BL-ENDART-ADV-FWN

[14] Join AARP: https://appsec.aarp.org/MSS/join/application?keycode=U9ZTPH9&intcmp=AE-ENDART3-BL-MEM

[15] AARP home page: http://www.aarp.org/?intcmp=AE-ENDART3-BL-HP

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