Wednesday, July 24, 2013

What is the story on the discounts for medical insurance to be available next January?

Here in Conn and other states individuals will be able to go online and find out if they qualify for premium support on medical insurance. Some call it a premium discount and it is based on a persons family income. The online system is scheduled to be available for viewing this October and the premium support will be starting in January.

Single individuals with income of up to about $46,000 will be eligible for premium support. The most a Single person earning say $42,000 would pay is 9.5% of their annual income. This comes out to be a monthly payment of $332.50. When income is below $30,000 the percent they pay will be lower. Whether they are age 32 or 62 does not matter.

Individuals living in Conn can take a look at what they may pay by going to Connecticut's online enrollment site. The home page directs you to the Savings calculator, which will make a projection.

The theory of the system is you go to an online site, enter personal and financial information, and in real time learn if you are eligible. The system is to check, as your information is entered, with what is called a federal hub and include agencies such as the IRS, Social Security, Homeland Security (to confirm citizenship). How much will be available in real time starting this fall is not yet known.

Interested in all the technical details on how premium support will work? How a person will have to reconcile the tax credit they receive? Take a look at this July 24th blog.

BTW - what a person technically will receive is an Advanceable Premium Tax Credit (APTC). If a person qualifies for premium support the system will send money to the medical insurance company the person selected and that company will send them a balance due invoice each month.

Questions? Call (860) 451-9793

John C Parker, RHU, LTCP
Niantic CT

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