Dependents Jumping Off Job Based Coverage to Marketplace

[nsure2day]

I have differing opinions on this. My thinking is that the employee stays generally and if the dependent cost of coverage falls over the percentage of income threshold they can go on exchange and if qualified get subsidy. They cannot get a pretax contribution and get premium assistance.

Comments?

 

[AllenChicago]

I have differing opinions on this. My thinking is that the employee stays generally and if the dependent cost of coverage falls over the percentage of income threshold they can go on exchange and if qualified get subsidy. They cannot get a pretax contribution and get premium assistance.

Comments?

Which of your opinions is the strongest, NSure?

 

[Ann H]

I have differing opinions on this. My thinking is that the employee stays generally and if the dependent cost of coverage falls over the percentage of income threshold they can go on exchange and if qualified get subsidy. They cannot get a pretax contribution and get premium assistance.

Comments?

Family Glitch - if the EMPLOYEE-ONLY premium is "affordable" (at 9.5% of household MAGI income or less), then nobody in the family who is eligible for the group plan can get a subsidy, regardless of how much it costs to add dependents to the group plan.

You are correct that they cannot get a pre-tax contribution and get premium assistance, but actually, they cannot get a pre-tax contribution at all for IFP plans.

 

[kgmom219]

There are two parts to this one

1. Dependents on current group coverage, who are not below the threshold, but will still save money and/or have better plans on the marketplace

2. Dependents on current group coverage who ARE below the threshold and have subsidies available on the marketplace

The answer is...who cares? Are you deciding the morality of ACA?

For whatever reason, the client wants the marketplace. Whether they are subsidy eligible or not is not the issue. As the broker, you need to do whats best for the client.

I have several clients who are eligible for employer based coverage, but choose to go with an individual plan. None of them are close to subsidy eligible, but its still a better fit for them.

 

[ameneses54]

Family Glitch - if the EMPLOYEE-ONLY premium is "affordable" (at 9.5% of household MAGI income or less), then nobody in the family who is eligible for the group plan can get a subsidy, regardless of how much it costs to add dependents to the group plan.

You are correct that they cannot get a pre-tax contribution and get premium assistance, but actually, they cannot get a pre-tax contribution at all for IFP plans.

I’m only hoping that the political loops will be circumvented and S.2434 - Family Coverage Act113th Congress (2013-2014)Bill will go through some day.
Sponsor: Sen. Franken, Al [D-MN] (Introduced 06/05/2014)

 

[nsure2day]

Thanks to Ann and Ameneses.