- Posted October 4, 2013 by
This iReport is part of an assignment:
Obamacare: Your story
Subsidy Tax Credit Not Instant Deduction from Premium
For those enrolling, if you can that is, for health insurance plans through the Marketplace Exchanges as part of the Affordable Care Act, you may be in for sticker shock when your first premium comes due. Don't expect what you have to pay to be the amount of the premium minus the subsidy.
You will be paying the full premium.
The subsidy kicks in as a tax credit when you file your taxes. So throughout the year instead of paying that "less than a cell phone" each month, you will be paying full price. As with the standard deduction and other deductions when you file for a refund or have to pay for not having enough tax withheld, you will have the amount of "overpayment" or "subsidy" to deduct from your tax liability.
So how is this going to be affordable for anyone?
On September 25th I wrote about how unaffordable the ACA actually is using the subsidized premium amount in my article entitled: "The Unaffordable Care Act - In Dollars and Cents". That article laid out the figures of how young people would have to choose between eating or paying their health insurance premium.
Now today, I finally learned that the subsidy will be a tax credit. So as in my example from the 25th, instead of trying to find $80 per month for insurance, that person will be faced with a $235 insurance premium.
Again tell me how this is affordable for low-income Americans that this law is suppose to be helping?
My life partner Iohn and I continue to try and get him enrolled, since his company, which operates over 200 restaurants nationwide, sent out a memo with paychecks on Thursday that it would no longer offer health insurance plans since it could not comply with the ACA for those plans nor the cost to upgrade the plans and keep the premiums affordable as mandated by the law.
Our efforts to navigate the MarketPlace Exchange continue to be frustrated as the web site continues to crash and not allow for access.
So if you have managed to actually enroll in an insurance plan and think you will be paying that much lower premium each month, you need to think again. You will have to shell out the full premium and wait for the deduction to your tax liability come Tax Day.
From the Cornfield, as more and more is learned about the ACA, the more and more it is certain that Senator Max Baucus was correct. This is a train wreck.