Does Incorrect Premium Calculation Affect Your Tax Refund?

In this blog, we’ll discuss a common issue faced by many ACA health insurance enrollees: incorrect premium calculations. We’ll provide guidance on how to proceed, correct the form, and potentially get refunded for past premiums.

Understanding Premium Calculations

The Affordable Care Act (ACA) provides financial assistance to individuals and families with low to moderate incomes to help them afford health insurance through the Health Insurance Marketplace. The amount of assistance you receive is based on your income and family size.

If your income decreases during the year, you may be eligible for a higher subsidy. However, if your income increases, you may have to pay back some of the assistance you received.

Reporting Changes to Healthcare.gov

It’s important to report any changes in your income or household situation to Healthcare.gov as soon as possible. This will help ensure that your premium calculations are accurate.

You can report changes by:

Logging into your Healthcare.gov account
Calling the Marketplace Call Center at 1-800-318-2596
Visiting a local enrollment center

Correcting Incorrect Premium Calculations

If you believe your premium calculations are incorrect, you should first contact your health insurance company. They may be able to help you correct the issue.

If you are unable to resolve the issue with your health insurance company, you can contact the Healthcare.gov Marketplace Call Center at 1-800-318-2596.

Getting Refunded for Past Premiums

If you paid premiums that you were not eligible for, you may be able to get a refund. To request a refund, you will need to contact your health insurance company.

The amount of the refund you receive will depend on the amount of the overpayment and the type of health insurance plan you have.

Importance of Accurate 1095-A Form

The 1095-A form is a tax document that shows the amount of advance premium tax credits (APTCs) you received during the year. This form is used to reconcile your APTCs with the amount of tax you owe.

If your 1095-A form is incorrect, it could affect your tax refund. Therefore, it is important to review your 1095-A form carefully and make any necessary corrections.

Conclusion

Incorrect premium calculations can be a frustrating issue, but it’s important to address the problem as soon as possible. By following the steps outlined in this blog, you can help ensure that your premium calculations are accurate and that you receive the correct amount of financial assistance. If you have any questions or need assistance, please contact a licensed agent for guidance.