I went back to school to get a masters and finished the degree in December. I was on an ACA-compliant student health insurance plan throughout grad school. After graduation, I decided to pay to extend the coverage through April 15th 2021, which was the latest I could extend it to. I don’t have access to any other health plan so I need to go to the marketplace. This will be my first time getting a marketplace plan.
My income, as it stands right now, will be about $15k. However, I have about 10 years of long term investments. I currently have about 85k in long term gains (in a taxable account). I may need to rebalance my portfolio and move money to cash/other investments, which will require that I incur a taxable gain…which would count towards my MAGI. It’s completely dependent on market conditions and my own day-by-day decisions. I realistically could end up selling things as late as December 31, 2021 – and it would still count towards my 2021 income.
Which plan am I suppose to enroll in? As I understand, my current income of $15k would qualify me for an Essential Plan, which is different than a metal-tier plan. Meanwhile, if I end up selling anything (or manage to earn other income), not only would I not qualify for an essential plan, I wouldn’t even qualify for subsidies on a metal tier plan…
Would I get penalized if my income changes drastically and I’m on an essential plan? I understand I’d owe the difference in subsidy for a metal-tier plan if my actual 2021 income is above my projected income. But what about essential plans? How would that work if my actual income ends up being higher than their threshold?
Will they abruptly end my coverage if my income changes – what happens if I’m currently receiving treatment? What happens if my income changes late into the year (as I mentioned, as late as December 31st)?
I also may change states this year as I relocate to find work. I understand I’d need to find a new plan in the new state. But will I get penalized for being on a NY essential plan May-July, for example, but then I earn more money in December?
A walk through of the logistics of this type of stuff would be very helpful!
submitted by /u/Ok-Top-4662
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I went back to school to get a masters and finished the degree in December. I was on an ACA-compliant student health insurance plan throughout grad school. After graduation, I decided to pay to extend the coverage through April 15th 2021, which was the latest I could extend it to. I don’t have access to any other health plan so I need to go to the marketplace. This will be my first time getting a marketplace plan. My income, as it stands right now, will be about $15k. However, I have about 10 years of long term investments. I currently have about 85k in long term gains (in a taxable account). I may need to rebalance my portfolio and move money to cash/other investments, which will require that I incur a taxable gain…which would count towards my MAGI. It’s completely dependent on market conditions and my own day-by-day decisions. I realistically could end up selling things as late as December 31, 2021 – and it would still count towards my 2021 income. Which plan am I suppose to enroll in? As I understand, my current income of $15k would qualify me for an Essential Plan, which is different than a metal-tier plan. Meanwhile, if I end up selling anything (or manage to earn other income), not only would I not qualify for an essential plan, I wouldn’t even qualify for subsidies on a metal tier plan… Would I get penalized if my income changes drastically and I’m on an essential plan? I understand I’d owe the difference in subsidy for a metal-tier plan if my actual 2021 income is above my projected income. But what about essential plans? How would that work if my actual income ends up being higher than their threshold? Will they abruptly end my coverage if my income changes – what happens if I’m currently receiving treatment? What happens if my income changes late into the year (as I mentioned, as late as December 31st)? I also may change states this year as I relocate to find work. I understand I’d need to find a new plan in the new state. But will I get penalized for being on a NY essential plan May-July, for example, but then I earn more money in December? A walk through of the logistics of this type of stuff would be very helpful!
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