What happens if my income changes after I receive an Insurance Subsidy?

Question: If I'm unemployed a the beginning of the year and sign up for health insurance, I will probally get a subsidy because my income will be low. What happens when I get a job later in the year and start earning a good salary? Will I have to pay the money back? Answer: Yes, you may have to pay some of that money back, but the amount you'd owe will most likely be capped. Each individuals circumstances are different, but here's how it might work in a typical situation. When you apply for health insurance on the state's exchange, or marketplace or thru an independent agent, you will be asked about your income. If you're collecting $300 a week in unemployment benefits, you'd probably qualify for a premium credit and out of pocket subsidy. You can choose your credit paid directly to the Insurance Company which will reduce your monthly premiums. The government will send that amount directly to the insurer. Let's say that you land a job in July with a $60,000 annual salary, but it doesn't offer health insurance. At that point, you'd need to inform the marketplace about your change in circumstance. "The key is to reach out immediately when things change," says Brian Haile, senior vice president for tax policy at Jackson Hewitt Tax Service. At your new salary, you'd no longer qualify for a premium tax credit, and you'd have to pay the full premium. At tax time, the government will reconcile the amount that you received in tax credits against your income for the year, in our example, roughly $38,000 including six months of salary and six months of unemployment insurance. If the amount you received in tax credits is higher than it should have been based on your annual income, you'll have to pay back the difference. But under the law your liability is limited if your income is less than 400 percent of the federal poverty level. Someone like you with income between 300 and 400 percent of poverty ($34,470 to $45,960 in 2013) would be liable to repay no more than $1,250.

About Medicare Open Enrollment

Are you happy with your current Medicare Plan? If you are happy with your Meidicare plan, you do not need to take action during Medicare Open Enrollment. You do no have to sign up for Medicare each year, however, if you would like to make changes to your Medicare plan, Medicare Open Enrollment is the time to make those changes, Visit www.medicare.gov for more information about open enrollment. Know the differences between enrollment periods. Medicare's Open Enrollment period (October 15, 2013 to December 7, 2013) is different from the enrollment period for the Affordable Care Act, also known as "Obamacare". If you are enrolled in a Medicare plan, you do not need to take action during "Obamacare" enrollment (October 1, 2013 to March 31, 2014). It is illegal for a person to knowingly sell "Obamacare" plans to those on Medicare. If you're unsure, call for help If you have additional questions about the Medicare Enrollment Period, you call call me at (740) 654-4055.