Aetna-CVS plans to exit ACA individual exchanges

[Duaine]

See the synopsis here:

[EXTERNAL LINK] - Google Search

 

[bill3173]

I stopped doing ACA many years ago, but the most fun part was talking to a self-employed person and explaining the tax credit and how they need to project what their income will be the following year.

The other fun part was having the person who was 64 and on Social Security (not working) deciding to withdraw $50k from their IRA/401k to pay off their house and then flabbergasted that they owe $6k on their taxes due to the premium tax credit being clawed back.

Oh, it gets much worse: Sell a "lot" for $200K with a cost basis of $45K. Pay income tax on $205K (your regular income of $50K plus diff), pay back $15K in subsidies and another $$40-50K in Capital Gains.

Had a low income high subsidy client that decided to sell some prime real estate that she inherited 30 years ago, when the property was valued as farm land. It had a cost basis of $26K. It was purchased for $565K, by a real estate developer. By the time she told me about it, paying back the $12K subsidy was the least of her concerns.

Fortunately, she's not close to Medicare Age or she would get hit again. IMEO, if anything needs to be reformed, it's the way poor people are taxed when they sell an asset.

 

[somarco]

if anything needs to be reformed, it's the way poor people are taxed when they sell an asset.

Or . . . advising them to get advice from their accountant/attorney before taking this step.

Easier to ask permission than it is to ask forgiveness.

 

[Jim Wright]

See the synopsis here:

[EXTERNAL LINK] - Google Search

All of those points link to this 2024 article about project 2025. There is no bill being presented at the moment. I like google AI overview too but you have to check the timeline of the sources

https://www.cbpp.org/research/federal-budget/house-republican-agendas-and-project-2025-would-increase-poverty-and

 

[bill3173]

Or . . . advising them to get advice from their accountant/attorney before taking this step.

Easier to ask permission than it is to ask forgiveness.

That seems like a step backwards. Aren't HSAs currently tax-free money going in and also tax-free going out as long as you spend it on healthcare?
Taxing it on the way in as a Roth will not be as attractive.

Yeah, that Roth HSA idea is kinda stupid.