Hi everyone, this is pretty specific but posting in the hope someone has been in the same sitch.
We are a couple aged 43 and 51 and we’re looking to minimize health insurance costs since we are both healthy and only need coverage for a worst-case scenario such as accident or serious illness. Currently the cheapest ACA bronze plan is $900/mth. We don’t make a ton of money but wouldn’t qualify for subsidies.
I have found an option which seems to be little-known and rarely used – the ACA catastrophic plan which is $700/mth for us and despite the name, actually has better coverage than the bronze plan (no coinsurance, 3 free primary care visits per year etc). To qualify for this plan if you are over 30, you need to show a hardship exemption (list of qualifying circumstances on https://www.healthcare.gov/health-coverage-exemptions/hardship-exemptions/) or affordability exemption (premium is above 8.27% of MAGI).
Although we likely will qualify for the affordability exemption, this will be hard to predict/prove since I am self-employed and my income varies by month. I am thinking of using the utility shutoff exemption by paying my utility bill late and waiting until I receive the shutoff notice, then paying the bill before the utilities actually disconnect. My understanding is that each shutoff notice covers 3 months, so I’d need to requalify 4x per year to keep the exemption. I know this sounds like a lot of hassle but we’d likely only do it this year as for 2022 we think our income will be low enough to qualify for ACA subsidies.
Has anyone employed this strategy successfully? Are the feds going to keep issuing an exemption certificate number for 4 shutoff notices in a row? And anyone know if I can deduct the self-employed health premiums for an ACA catastrophic plan, as I know I can for metal-level?
Sorry about the long post but wanted to share all pertinent info!! As a last FYI I’ve researched other options such as healthcare-sharing and short-term plans and we’re not willing to accept the risk associated with these.
submitted by /u/BigSkyCountry204568
[link] [comments]
Hi everyone, this is pretty specific but posting in the hope someone has been in the same sitch. We are a couple aged 43 and 51 and we’re looking to minimize health insurance costs since we are both healthy and only need coverage for a worst-case scenario such as accident or serious illness. Currently the cheapest ACA bronze plan is $900/mth. We don’t make a ton of money but wouldn’t qualify for subsidies. I have found an option which seems to be little-known and rarely used – the ACA catastrophic plan which is $700/mth for us and despite the name, actually has better coverage than the bronze plan (no coinsurance, 3 free primary care visits per year etc). To qualify for this plan if you are over 30, you need to show a hardship exemption (list of qualifying circumstances on https://www.healthcare.gov/health-coverage-exemptions/hardship-exemptions/) or affordability exemption (premium is above 8.27% of MAGI). Although we likely will qualify for the affordability exemption, this will be hard to predict/prove since I am self-employed and my income varies by month. I am thinking of using the utility shutoff exemption by paying my utility bill late and waiting until I receive the shutoff notice, then paying the bill before the utilities actually disconnect. My understanding is that each shutoff notice covers 3 months, so I’d need to requalify 4x per year to keep the exemption. I know this sounds like a lot of hassle but we’d likely only do it this year as for 2022 we think our income will be low enough to qualify for ACA subsidies. Has anyone employed this strategy successfully? Are the feds going to keep issuing an exemption certificate number for 4 shutoff notices in a row? And anyone know if I can deduct the self-employed health premiums for an ACA catastrophic plan, as I know I can for metal-level? Sorry about the long post but wanted to share all pertinent info!! As a last FYI I’ve researched other options such as healthcare-sharing and short-term plans and we’re not willing to accept the risk associated with these.
submitted by /u/BigSkyCountry204568 [link] [comments]Read Morer/HealthInsurance