How life changes can impact your ACA coverage, costs, and eligibility
When you enroll in an ACA (Affordable Care Act) health plan, the information you provide plays a key role in determining your eligibility and costs. This is especially true for your income and household size. But, your situation doesn’t always stay the same throughout the year.
If your income or household changes, it’s important to update your Marketplace application as soon as possible. Here’s why it matters, whether you receive financial assistance or not.
If You Receive Subsidies (Premium Tax Credits)
If you’re getting a subsidy to lower your monthly premium, keeping your information up to date is critical.
Avoid owing money at tax time
Subsidies are based on your estimated annual income. If your income increases and you don’t report it, you may receive more financial help than you qualify for, and you will have to pay some of it back when you file your taxes.
Make sure you’re getting the right amount of help
If your income decreases, you could qualify for a larger subsidy, which lowers your monthly premium. Updating your income ensures you’re not overpaying.
Maintain correct eligibility
Changes in household size, like marriage, divorce, or having a child, can affect how much assistance you qualify for and what plans are available to you. It is important to take a moment to ensure that the information about your household is correct.
If You Do NOT Receive Subsidies
Even if you’re paying full price for your coverage, updating your information is still important.
You could become eligible for savings
If your income drops during the year, you may qualify for premium tax credits or even cost-sharing reductions. Updating your information allows you to access those savings right away. You don’t have to wait for next year’s enrollment.
You may qualify for Medicaid
A significant income decrease could make you eligible for Medicaid, which may offer lower costs and additional benefits.
Stay aligned with your current situation
Household changes, like adding or removing dependents or moving to a new area, can impact your plan options and eligibility. Keeping your application current helps avoid complications later.
Stay Ahead of Potential Issues
Your ACA coverage is based on your current life situation, not just what it looked like when you enrolled. Updating your income and household information helps ensure you’re paying the right amount, receiving the correct level of financial assistance, and staying properly covered throughout the year.
You can typically do this by logging into your Marketplace account, based on where you originally enrolled (HealthCare.gov or your state’s exchange). Keeping your ACA application current helps ensure your coverage stays aligned with your needs, helps you avoid financial surprises at tax time, and may open the door to savings you didn’t realize were available.
Not sure how to make an income update? We can help! Reach out for guidance.
