We have been shaking our head in disgust for people. Why? Households paying back subsidy. That’s right there are households who HAD health insurance, complied with the law that are paying back a part of the subsidy. Here they are knowing they had health insurance, paid a premium all year long so they wouldn’t be penalized at the end for NOT having health insurance going in to get their taxes done. Then lo and behold they are told, you have to pay back a part of the subsidy.
Why? Because what you guesstimated your income to be, what your income actually is and the amount of the subsidy you got means you were overpaid so you have to pay back a portion now. Wait!! The average amount that households are having to pay back is at least $800. Let us tell you, we have actually talked with people who are paying back $1,000, $5,000 or even more!! My husband and I have had some serious discussions about this because personally, I would be fuming if I paid a premium all year long, incurred costs if I went to the doctor and then at tax time discover we OWE for the subsidy.
We literally have been shaking our head in disgust. Listen, there are MILLIONS of people who are in this boat. So what that tells us is it was not made clear that people needed to return to the exchange and update their information if there was a change in income whether it was more or less.
When we initially found out about this, the word was there were 6.9 million people that got the subsidy and 3.4 million people would be paying a part of back. Does that seem like a money maker? Was the whole idea another way to create money? Will you write us and weigh in if you are one of the ones having to pay back?
Did you keep health insurance for the second enrollment or did you drop it?