Unreliable farmers' income and Obamacare subisidies

[tina in ne]

Is there any hope for health premium subsidies for farmers based on income? One year we can be way over and the next year have a disaster income-wise. Ha- even in good years we don't have any cash. How are they figuring any self-employed person who has unsteady income from year to year? What are you putting down for your income?

We, along with so many others, are seeing premiums skyrocket with higher deductibles and co-pay.

[Suey73]

We are going to rely on our insurance agent to figure this out.  So we have not studied.   I figure the Health Insurance subsidy will be a yearly thing  based on the year before's AGI  on your income tax file.       We hope to get my husband's right knee covered now.   Our premiums have been very low for the past 2 years.   But,  if anything were to happen to his right knee they would pay nothing.    10 years ago we would have easily qualified for subsidies.   Don't think we will now. 

[Kay/NC]

Something I haven' t studied, since our agent told me we woulf likely be in a grandfatheresod plan. There are all sorts of occupations and businesses where income fluctuates drastically. The agents are still learnng the ins and outs, I think.

[farm160]

You might want to ask you insurance agent about this.  As I understand it you need to go through one of  the health care exchanges (healthcare.gov) to get the subsidy and those are basically designed for those who can't get insurance elsewhere.   Most people will still find plans more affordable through their local agent.    We just got notice over the weekend that our current plan meets the act requirements so we're good to go until our premium comes due next August.

I think nearly everyone falls in the category of "unpredictable" income anymore.  You will use your reported income from your tax return.  If you underestimate your income, then the year or two following you will need to pay back the subsidy per this article.

http://www.cnbc.com/id/100554855

Here's a great site that shows what your subsidy might be if you go through the government exchanges. 

Anyone who smokes should be required to complete this calculator to learn the effect their smoking has on health care costs and premiums.

http://kff.org/interactive/subsidy-calculator/#income-type=dollars&income=36000&employer-coverage=0&...

[tina in ne]

In reading closely the letter and info sent by our local BC/BS agent (Nebraska), our current plan does not meet the new requirements. They plan to automatically move us into a similar (not really!) plan, one of 11 that are offered in Nebraska. It looks like there are 8 bronze plans, 2 silver plans and one gold. What is covered is the same in all of them. It's just the combinations of deductibles and co-pays and premiums that are different. 

It looks like we can sign up for any of these plans directly through  our agent. If we think we qualify for a subsidy we will have to enroll online with the government and indicate the Nebraska plan we want. All eleven plans qualify for potential subsidies. We cannot purchase through the agent if we are applying for a subsidy. That has to be done through the government site.

The new plan will be hard if something would happen medically to one of us. But, we have been contributing to a HSA for several years and will do ok. Our newly married son, on the other hand, has a very good policy at the moment. Low premium, low deductible and no co-pay. He got in a brand new pool which likely means no old folks to support. Now, there is no way they could pay the $12,700 out-of-pocket the new policy would require, since he so far just earns wages from the farm. He hasn't had a chance yet to build up his HSA account. We're thinking of having the farm having funds earmarked for such a situation as an added bonus to him.

[hardwayfarmer]

From what I read last spring, the income you reported on your 2012 tax return, the one filed last winter/spring, will determine whether you qualify for a subsidy for 2014.   I doubt there will be any provisions for averaging out the good and bad years.  So, if 2012 was a good year, don't expect a subsidy for 2014.  In the business section of this discussion site there's a thread on planning to weather the expected lower farm income in 2014 and beyond.  If that prediction comes true, one might qualify for a subsidy for 2016 and later. 

My insurance company sent me a letter a couple of weeks ago offering the chance to renew my current policy before October 1, yesterday, and lock in the premiums and terms through the end of 2014.  Or I could choose to let it go through the current anniversary date of Jan. 31, 2014, at which time I would have to see what might be available either through them or from the exchange.  My agent advised accepting the offer.  I read a few days later that many employers have been or plan to renew their current plans before Oct. 1, or Nov. 1, or Dec. 31, all in 2013.  Apparently this kicks the can down the road to Dec. 31, 2014 so they can keep their current plans another year, whereas, if they wait until their plan anniversary date in 2014, their plan will have to change to meet the coverage requirements of the Unaffordable Care Act.  Evidently, that is what my company did when they made their offer to me.  I accepted the offer.  My premium will stay the same as it is now, but the deductible will reset on Jan. 1, 2014.  Next fall I'll be eligible for Medicare and will see what's available for a supplemental policy then.