Residents Who Fall Below Poverty Don’t Have To Repay ACA Credits
U.S. residents who did not qualify for Medicaid but whose estimated incomes qualified them for federal subsidies will not need to repay the subsidy if their actual incomes fall below the federal poverty level, Kaiser Health News reports.
Under the Affordable Care Act, subsidies are available to individuals whose incomes are between 138% and 400% of the federal poverty level. Those with incomes below that level do not qualify for subsidies. Such individuals generally would qualify for Medicaid -- which expanded coverage to adults with incomes up to 138% of the poverty level -- and would not need premium tax credits, according to KHN. However, because not all states expanded their Medicaid programs, many individuals qualified for neither tax credits nor Medicaid.
Some Fear They Have To Repay Gov't
As a result, some low-income U.S. residents who qualified for subsidies based on income estimates feared they might have to repay thousands of dollars if their actual incomes ended up lower than predicted.
However, according to a Treasury Department rule, individuals will not be required to repay subsidies if their incomes for the year fall below the federal poverty level, even if the insurance exchange estimates that their incomes would be between 100% and 400% of that threshold.
Meanwhile, individuals whose incomes end up above the federal poverty level will have to repay any amount of subsidy above what they qualified for, while those with incomes that ultimately come in above 400% of FPL will need to pay back the entire amount (Andrews, Kaiser Health News, 10/17).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.