I've been concerned about this, and here it is.
This could happen, and believe many of my clients will be subjected to this:
1. Client stops paying premium, finally lapses after 90 days, but the MP kept sending tax credits to the carrier. Will these be refunded and reconciled by the carrier and MP?
2. Client changed plans in Feb 2015, but marketplace never sent cancellation notice to old carrier, and kept sending tax credits for 3 months or more. I'm being paid by some carriers STILL (Cigna, etc) on plans that were terminated via the marketplace.
3. Client had 14' plan, we used Sherpa for 15', old plan was never cancelled by Sherpa or other WBE or carrier direct method.
i can go on, but you get the drift.
Colorado family says tax bill for exchange error an unending disaster - The Denver Post
Swan, a weight-loss coach, signed up for family coverage through the exchange for 2014, but changing job circumstances for husband Martin Shopes led her to contact the exchange to cancel that Kaiser Permanente policy effective Feb. 1.
Shopes got coverage through his employer. Swan signed up for an individual policy with Kaiser. Her 18-year-old son had CHP+ and later Medicaid.
The Swan-Shopes family continued to receive monthly bills for their share of the canceled plan's premium after tax credits, a whopping $3 plus change. And the monthly premium tax credit of $903, for which the family was eligible only in January, presumably was credited to insurer Kaiser.
At first, the notices for unpaid premiums were alarming, Swan said, but surely the matter could be straightened out before this year's income tax filing deadline. It couldn't, despite the hours spent on hold or talking to and e-mailing people at Connect for Health and Kaiser.
The exchange told Swan it had no record of her new individual plan, she said. Kaiser could find only her family plan. She later tried to cancel that plan when she joined her husband's employer-based policy.
Then the tax bill came. According to the 1095, the family had received $10,837 in tax credits, which paid premiums for a plan they had tried to cancel. The family's change in income meant they no longer qualified for subsidies.
This could happen, and believe many of my clients will be subjected to this:
1. Client stops paying premium, finally lapses after 90 days, but the MP kept sending tax credits to the carrier. Will these be refunded and reconciled by the carrier and MP?
2. Client changed plans in Feb 2015, but marketplace never sent cancellation notice to old carrier, and kept sending tax credits for 3 months or more. I'm being paid by some carriers STILL (Cigna, etc) on plans that were terminated via the marketplace.
3. Client had 14' plan, we used Sherpa for 15', old plan was never cancelled by Sherpa or other WBE or carrier direct method.
i can go on, but you get the drift.
Colorado family says tax bill for exchange error an unending disaster - The Denver Post
Swan, a weight-loss coach, signed up for family coverage through the exchange for 2014, but changing job circumstances for husband Martin Shopes led her to contact the exchange to cancel that Kaiser Permanente policy effective Feb. 1.
Shopes got coverage through his employer. Swan signed up for an individual policy with Kaiser. Her 18-year-old son had CHP+ and later Medicaid.
The Swan-Shopes family continued to receive monthly bills for their share of the canceled plan's premium after tax credits, a whopping $3 plus change. And the monthly premium tax credit of $903, for which the family was eligible only in January, presumably was credited to insurer Kaiser.
At first, the notices for unpaid premiums were alarming, Swan said, but surely the matter could be straightened out before this year's income tax filing deadline. It couldn't, despite the hours spent on hold or talking to and e-mailing people at Connect for Health and Kaiser.
The exchange told Swan it had no record of her new individual plan, she said. Kaiser could find only her family plan. She later tried to cancel that plan when she joined her husband's employer-based policy.
Then the tax bill came. According to the 1095, the family had received $10,837 in tax credits, which paid premiums for a plan they had tried to cancel. The family's change in income meant they no longer qualified for subsidies.
