Understanding the Impact of Property Sale and Employment Income on ACA Health Insurance

As Americans navigate the complexities of health insurance, it’s crucial to recognize how life events can influence their ACA coverage. This blog explores how property sale and changes in employment income affect ACA insurance, shedding light on the topic inspired by a recent post.

Property Sale and ACA Premium Tax Credits

The Affordable Care Act (ACA) provides premium tax credits to low- and moderate-income individuals and families to offset the cost of health insurance premiums. These credits are based on the projected estimated annual income.

When an individual or family sells a property, the proceeds are considered income for the year of sale. This can significantly increase the adjusted gross income (AGI) and potentially make them ineligible for premium tax credits or result in having to repay some portion of the tax benefits received.

In the case of the post, the parents sold their farm, resulting in a significant increase in their AGI. This will likely impact their premium tax credits and may require them to repay some of the credits they received during the year.

Employment Income and ACA Eligibility

The ACA eligibility is based on the projected household income for the upcoming year. When an individual’s or family’s income changes, it’s essential to update their application using HealthCare.gov to avoid potential issues.

In the post, the father of the family is getting hired at a hardware store, and his mother expresses concern that their health insurance premium will be $2,000 a month due to the sale of their home.

The mother’s concern is misplaced as ACA eligibility for 2018 is based on their projected 2018 income. The sale of their home will not affect their ACA eligibility or premiums for the upcoming year. The father’s new income will be considered when determining their eligibility and premium costs.

Next Steps for ACA Applicants

It’s crucial to stay informed about ACA regulations and how life events can impact your coverage. If you have any questions, don’t hesitate to reach out to a licensed agent for guidance. They can help you navigate the complexities of the ACA insurance and ensure you have the most up-to-date information.

Remember, understanding your eligibility and premium tax credit options under the ACA is essential for accessing affordable health insurance coverage.