Please explain this to me...I think it means free Health Insurance if you get UI

[BulldogTom]

I was doing a Spidell webinar yesterday going over the changes from the ARP law.   Under the topic of Premium Tax Credit, the materials says...

"For 2021 and 2022, the Premium Tax Credit is significantly expanded by: 

• Deeming taxpayers who received at least one week of UI benefits during 2021 as having received income of 133% of the poverty level for purposes of determining the amount of their Premium Tax Credit for 2021 (even if their income was actually higher) (ARPA §9663).

The new law also changed the household income contribution percentage for 133% income range to 0%.

The way I read this, if you get UI for even 1 week of 2021, you get health insurance from the exchange for free.   Am I interpreting this change in the law correctly?

Tom
Modesto, CA 

[Abby Normal]

Sounds like it.

[Lion EA]

Wow! I want free money...

[Lee B]

Copied from from the Health Affairs blog:  https://www.healthaffairs.org/do/10.1377/hblog20210311.725837/full/

"The American Rescue Plan creates a “special rule” regarding PTC eligibility for those who receive unemployment compensation during 2021. If someone receives (or is approved to receive) unemployment benefits during 2021, their income will be treated as no higher than 133 percent of the FPL. This means that those who receive unemployment benefits can receive maximal subsidies for ACA coverage, including no-premium coverage."

Tom, I don't think they get it for free, but it's a very liberal interpretation of the FPI limit.

According to this blog, there were a lot of changes in this area which significantly expands the eligibility to receive the PTC and the APTC.

[Lee B]

While this change would dramatically expand the number of taxpayers eligible to receive the PTC, there are still limitations.

For example, I recently finished a tax return for a couple MFJ with 2 kids, spouse received $ 2,710 Unemployment.

However their AGI was almost $ 200,000, with that income, even with this liberal change in the rules, they don't qualify to receive the PTC.

[Lee B]

1 hour ago, cbslee said:

 

1 hour ago, cbslee said:

Copied from from the Health Affairs blog:  https://www.healthaffairs.org/do/10.1377/hblog20210311.725837/full/

"The American Rescue Plan creates a “special rule” regarding PTC eligibility for those who receive unemployment compensation during 2021. If someone receives (or is approved to receive) unemployment benefits during 2021, their income will be treated as no higher than 133 percent of the FPL. This means that those who receive unemployment benefits can receive maximal subsidies for ACA coverage, including no-premium coverage."

Tom, I don't think they get it for free, but it's a very liberal interpretation of the FPI limit.

According to this blog, there were a lot of changes in this area which significantly expands the eligibility to receive the PTC and the APTC.

 

1 hour ago, cbslee said:

While this change would dramatically expand the number of taxpayers eligible to receive the PTC, there are still limitations.

For example, I recently finished a tax return for a couple MFJ with 2 kids, spouse received $ 2,710 Unemployment.

However their AGI was almost $ 200,000, with that income, even with this liberal change in the rules, they don't qualify to receive the PTC.

I found several updated PTC calculators and even with MFJ 300,000 of AGI you qualify for enough PTC to reduce the second lowest cost Silver Plan

to an out of pocket cost of $ 0. So, I humbly apologize, you were right!

[Possi]

I just threw up in my mouth a little bit. 

[BulldogTom]

2 hours ago, Possi said:

I just threw up in my mouth a little bit. 

@Possieeeewwwww!

This is what I thought I was reading.   Thanks for your confirmation that I understood the changes.   I think if someone goes for the super-duper Platinum plan they still have to pay the difference between the SLCS and the plan they picked, but they still get 100% PTC regardless of income.

Tom
Modesto, CA

[RitaB]

I'm still mad about PPP funds being abused and then not even being taxed.  And while I found a wonderful substitute for health insurance in 2015, this is all too stupid to be real.  

[Lee B]

Almost forgot, according to the Health Affairs blog, I quoted from, this change is in effect for both 2021 and 2022.