Just when I think we are done talking about the subsidy, more news surfaces, is subsidy good or bad? Remember in early January, we shared with you how 6.8 million people got the subsidy to get health insurance. At that time, H & R Block anticipated that 3.4 million people would be paying it back.
Fast forward to February and March when I talked with several people who were local and some that were not. Oh yea, they were paying back a part of the subsidy and they were NOT happy. People expressed major frustration, feeling as if they had been taken advantage of.
Can you blame them!! The individual mandate basically said if you do not get health insurance you would be penalized. So these people thought they were safe. They complied with the law. They did and it seems as if they missed this fact … IF your income changed in any fashion, you were supposed to go back and notify the exchange about the changes.
Fast forward to the end of April….. Remember this is titled is the subsidy good or bad. Well, I am going to SAY BAD!! I am SHOUTING it from the top of my lungs. Here’s the latest. 6.8 million people did get the subsidy to get health insurance… 5.5 MILLION are paying it back!!
Hold on a minute!! Is it just us or does that sound like waaaayyyy too many!! How is it that this could be miscalculated to the degree of more than half are paying it back? This sure would make me not want to get it in year two.
Who benefited from this? All we see is a premium was paid, deductibles for some, maybe some doctor’s visits and then at tax time part of the subsidy had to be paid back. Money going out, out again and not coming in.
For those who told me they didn’t even use their health insurance the first year, they were madder than some of the others.