MAGI: another bizarre twist to ACA

For those of you who don't know, MAGI is an important number for those who MUST get the insurance called the ACA. It's derived from Gross Income, but adds in a lot of income to increase the likelihood that your subsidy will diminish.

This is from the Michigan website, but I am guessing most states are similar.
www7.dleg.state.mi.us...

[from: Michigan Estimator
www7.dleg.state.mi.us... ]

This PDF lists important terms and what they mean for ACA.
Such as household income....which seems to be something made up especially for ACA.

Although families receive a premium break, as it is cheaper to have two parent and a child, than it is for three individuals, you don't just use the parent's income [plus several additions] to arrive at MAGI, or Modified Adjusted Gross Income.

Your Annual Income is used to determine, if any, the amount of your estimated Advanced Tax Credit. Add together the modified adjusted gross income from your federal tax return and any of your dependents’ returns who are required to file. Modified adjusted gross income for many will be their adjusted gross income from Form 1040 line 37 or 1040EZ line 4. For modified income, some taxpayers will add back deductions taken like student loan interest, IRA contributions, qualified tuition, and half of self-employment tax. Tax preparers and tools often list your modified adjusted gross income.

IOW, let's say your child works 25 hours a week at McDonalds....you have to add his income to your income for your MAGI!!!!!!!!!!!!!!!
Yeah, keep the insurance you've got...and your premiums won't go up

reply to post by DontTreadOnMe

Every strike of the hammer drives the nail, thanks DTOM!

I seriously fail to see how people can keep defending this bill. Everyday new stuff comes to light about how terrible this is for the nation yet people are still defending it. What is going on?

DontTreadOnMe

Yeah, keep the insurance you've got...and your premiums won't go up

If only we could!
What they did not tell us, well everything that was in the bill!
Only we had to pass it to find out what was in it.

The insurance we had all has to change to come up to ACA standards.
They should have had the effective start date to be October 31, Trick or Treat.

DontTreadOnMe

IOW, let's say your child works 25 hours a week at McDonalds....you have to add his income to your income for your MAGI!!!!!!!!!!!!!!!
Yeah, keep the insurance you've got...and your premiums won't go up

when I was a student and had no insurance I went in to get my knee checked out at a "free" clinic as I had gout in it and needed it drained. I had no job and really no money as I was paying my school tuition out of pocket and didn't take any student loans. Anyway they knew I was a student and had no money well instead of giving me a discounted rate for that they took my mom and dads income and wouldn't give me a discount so I had a $800 doctors bill for draining my knee and lab fees. So in my case atleast this is nothing new.

I will have to say as this may be important, I went to get my toe checked as I had gout in it about a year before and this was before the insurance tax, and I only had to pay like $10, but this time was after the tax and was charged the full amount, not sure if that matters or not because it wasn't totally enacted or enacted at all I'm not sure. I went in for my knee in January.

Krazysh0t
I seriously fail to see how people can keep defending this bill. Everyday new stuff comes to light about how terrible this is for the nation yet people are still defending it. What is going on?

I guess that is what you get when you pass a bill to see what's inside, No?

reply to post by 727Sky


I guess that and then proceeding to not read it even after it is passed. There has to be some reason why people would continue to defend this bill despite all the negative things surrounding it. Are people so dumb that they think they can just will the bill to be successful?

I've seen people on these boards and outside doing everything from ignoring all negatives, rationalizing everything, to even someone telling me that analyzing the progress currently is a waste of time. Like damn, it's like people don't want to discover the thing that they've been supporting for years turned out to be a big pile of crap.

reply to post by DontTreadOnMe


Without saying which state - I spent the last year (until the shutdown) working on ACA implementation no one of the exchanges. As a part of my job I had to basically read and understand every bit of fine print involved with the bill.

When implementation began, and the questionnaire/application was being created I remember everybody on my job thinking about not going through their employer, using their own numbers to test what their tax credits would be. MINIMAL doesn't really describe it.

We were simultaneously working on implementation of the law, and criticizing it for taking more money from Americans. If I were to put the ACA in one sentence: guaranteed gains for health insurance companies, guaranteed losses for PEOPLE.

reply to post by Krazysh0t


People defend ACA because their ego's won't let them admit they were wrong. Its why you can thoroughly debunk something in a thread, only to be called a troll.

Krazysh0t
reply to post by 727Sky

 

I've seen people on these boards and outside doing everything from ignoring all negatives, rationalizing everything, to even someone telling me that analyzing the progress currently is a waste of time.

A thought, perhaps they are not real people,
maybe they are persona's paid by ....well ....just imagine.

The people who actually wrote this bill would probably get lynched were they to announce it on a street corner somewhere. Why the Republicans ever passed it only to stonewall over the budget over it's implementation makes it look like this whole showdown was engineered by both parties. But why? What are they going to do with this situation they've created? That's what really worries me.
Every day a new story about ACA comes out showing just how damn expensive, complex and overbearing it is. I think we're in for one hell of a rough ride.

reply to post by DontTreadOnMe


isn't modified adjusted a Pleonasm?
obviously some governmentally employed idiot came up with this forced term,
no doubt because of how it magically funnels money out of peoples pockets.

reply to post by Krazysh0t


Democrats and Republicans are what is going on. Once we rid the country of all Democrats and Republicans we can return to government of the people, by the people and FOR THE PEOPLE. We need to start electing leaders who represent us instead of the corporations they hold stock in.

reply to post by Asktheanimals


At some point, they will have to start facing it.
Don't forget how few have actually gotten through.

I have yet to be able to get past the login, except for very early in the morning.
I so feel for those caught up in this.
Not to toot my own horn, but example where private insurers are dumping thousands for the more lucrative exchange business.
www.abovetopsecret.com...

What most people don't realize is the Perfect Storm that is building with all the cuts in revenue generators for the ACA that are happening. First Big Business get's a one year reprieve, then we are talking about getting rid of the Medical Equipment ACA tax, now Unions are going to get a one year pass on extra taxes on their plans. Even worse, Wait a few years till the extra money the Federal Govt. is giving to States for Medicaid Expansion ceases, then the SHTF.

Add all of those reductions to revenue for the ACA along with the (so far) less than expected signup rate on the Marketplaces and you have a Very Bad Situation.

Less people in the the insurance pool will mean less revenue and the cuts in the various taxes mean less revenue too. The ACA expenses have been grossly underestimated and these two things will make the ACA even more costly to our Nation. The ACA is predicated on almost every American signing up. We will see if that is the case.

The Government will be shelling out tons of subsidy dollars, take in less revenue and have less people on the plans than originally projected for it. Something will have to give, insurance companies will NOT run these plans if they are not profitable for them, they will bail. Premiums are looking to go up in general. I would expect further shakeup in the insurance field over the next year as The ACA starts to take hold.

......We are on our way to a single payer system for the vast majority of America. Mark my words. Of course our elected officials will be exempt from it, can't have them having the same plan as the little people do.

President lie to the american people once again, he kept re-iterating that if you are happy with your current plan, you can keep it. But unfortunately, most insurance companies are dropping those plans.

And the website is designed in such a way to fool american people.

. Forbes : Obamacare's Website Is Crashing Because It Doesn't Want You To Know How Costly Its Plans Are

Healthcare.gov forces you to create an account and enter detailed personal information before you can start shopping. This, in turn, creates a massive traffic bottleneck, as the government verifies your information and decides whether or not you’re eligible for subsidies. HHS bureaucrats knew this would make the website run more slowly. But they were more afraid that letting people see the underlying cost of Obamacare’s insurance plans would scare people away.

But the laws’ supporters and enforcers don’t want you to know that, because it would violate the President’s incessantly repeated promise that nothing would change for the people that Obamacare doesn’t directly help. If you shop for Obamacare-based coverage without knowing if you qualify for subsidies, you might be discouraged by the law’s steep costs.

reply to post by VimanaExplorer


But they are going to find out sooner or later....they are going to find out the Johnny's job will add to the "household income"; that the subsidy will be dwarfed by the deductible; that there is also the "co-insurance", and that in many cases, the only insurance that will cost less than the 8% touted is the lowest of bronze plans with little coverage.

“Healthcare.gov was initially going to include an option to browse before registering,” report Christopher Weaver and Louise Radnofsky in the Wall Street Journal. “But that tool was delayed, people familiar with the situation said.” Why was it delayed? “An HHS spokeswoman said the agency wanted to ensure that users were aware of their eligibility for subsidies that could help pay for coverage, before they started seeing the prices of policies.” (Emphasis added.)

www.forbes.com...

reply to post by DontTreadOnMe


Like I've said, the ACA is predicated on almost everyone signing up. Young people, those 18-26 not covered under their parents plans and those over 27 are almost for sure not going to sign up for Health Care Coverage at the levels the Government anticipates. It's a losing proposition for most of them. Why pay $209 a month for insurance that you won't use when the penalty for not signing up is only $300 for someone making $30,000? I would just wait till I'm really sick, get the insurance and pay the penalty.

Young people really get the short end of the stick with the ACA. Kinda ironic in that they were probably one of the main reasons Pres. Obama was elected and then re-elected in the first place.

reply to post by pavil


It's no bed of roses for those 55+.
Many of those people are not living all that great.
Especially since the rates rise so much the older you get.
People are healthier than they used to be...and I bet the 55+ eat less junk food and such....stopped smoking, drink less than those younger.

reply to post by Krazysh0t


The ones you still see defending it are the ones not affected by it, or being paid to defend it in forums such as ATS. They're also the same ones still supporting Obama no matter what he does. I see people on MSM stumble all over themselves trying to make excuses and continuously getting owned. I like to flip through the news channels to see what's being talked about, or not being talked about, and they had a guy on FOX making excuses about the ACA website fiasco. The discussion panel was laughing at this guy and no matter what the panel said to prove him wrong he wouldn't give up.