Question about loophole – is this legal?

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I’m self employed, and genuinely I don’t know what my income will be each year. 2020 started off terribly but I started a company that took off in a very positive way, so my income changed a lot.

2021 could start strong but things could change at any time with the business I’m in.

I know my subsidy for Obamacare gets reconciled every year come tax filing time so generally I just let my accountant sort it out. I haven’t been too worried. My reported number was $18k a year and it’s turned out to be around $30k this year, so I’ve saved some money to pay back my subsidy. I knew this would happen, it’s no big deal.

BUT…because I’m on this low rate, my co-pays are very low too. And although I haven’t used it much, there’s been a couple of doctors visits and small things. So I asked my insurance agent if I will have to pay back the co-pay too, and she said that has never happened, and so I realised that if I just declare a low income rate, and pay back the subsidy come tax time – my co-pays will be insanely low and I won’t have to pay really high copays, even if I pay back the subsidy.

I had to run it by her a few times, but although this feels like a massive manipulation of the system, apparently it’s perfectly legal and there are no penalties for doing so.

Has anyone come across this before? I really have no idea about any of this. I’m British and honestly if I got a horrible long term illness I would go back to the U.K. where healthcare is free, so I’ve always just had the minimum healthcare that’s required for emergencies.

But this loophole seems very straightforward, she assured me it was fine. Is it? Am I breaking some kind of law? I really don’t think I am, since I genuinely don’t know what my income will be each year and estimating it is always wrong either way.

submitted by /u/Londongirl25
[link] [comments]
I’m self employed, and genuinely I don’t know what my income will be each year. 2020 started off terribly but I started a company that took off in a very positive way, so my income changed a lot. 2021 could start strong but things could change at any time with the business I’m in. I know my subsidy for Obamacare gets reconciled every year come tax filing time so generally I just let my accountant sort it out. I haven’t been too worried. My reported number was $18k a year and it’s turned out to be around $30k this year, so I’ve saved some money to pay back my subsidy. I knew this would happen, it’s no big deal. BUT…because I’m on this low rate, my co-pays are very low too. And although I haven’t used it much, there’s been a couple of doctors visits and small things. So I asked my insurance agent if I will have to pay back the co-pay too, and she said that has never happened, and so I realised that if I just declare a low income rate, and pay back the subsidy come tax time – my co-pays will be insanely low and I won’t have to pay really high copays, even if I pay back the subsidy. I had to run it by her a few times, but although this feels like a massive manipulation of the system, apparently it’s perfectly legal and there are no penalties for doing so. Has anyone come across this before? I really have no idea about any of this. I’m British and honestly if I got a horrible long term illness I would go back to the U.K. where healthcare is free, so I’ve always just had the minimum healthcare that’s required for emergencies. But this loophole seems very straightforward, she assured me it was fine. Is it? Am I breaking some kind of law? I really don’t think I am, since I genuinely don’t know what my income will be each year and estimating it is always wrong either way.
submitted by /u/Londongirl25 [link] [comments]Read Morer/HealthInsurance

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