Hey Chris, thanks for the kind note and great question. When you apply, you’ll make your best guess at income. The premium will be based on expected 2022 income. You will pay the subsidized amount (not the full amount) each month.

My understanding is that actual vs expected is settled at tax time, but we haven’t been through the process yet. Our 2021 premiums were based on an educated guess of $60k income (which includes Roth conversions, etc).

Also note that as of the passage of the ARPA, the subsidy cliff is gone at least through 2022. More here: https://clippingchains.com/2021/03/15/health-insurance-arpa/

Hope that makes sense!

I think I listened and read this article at least 5 times now, fascinating to me.
Follow up question I couldn’t find the answer to.
If 2021 someone wouldn’t qualify for subsidies, but in 2022 they were retiring, expecting much less income, expecting to qualify for subsidies……I see plans that say something like this. $107.40 /month after $1197.00 tax credit for example.
Question is do you pay the full $1304.40 per month and then get a credit at tax time, or Do you somehow true up at tax time since exact income will nearly always be different than estimated income?

Thanks for this note Jenni!

One comment: I wouldn’t say our plan is a catastrophic plan, just a HDHP. It’s a bronze plan, and far from the highest deductible we could have chosen.

Certainly, even a bronze plan won’t make everyone feel comfy with that kind of deductible.

For those out there, the income subsidy was actually adjusted twice in 2021. You have to basically reapply to get the lower rate but if you didn’t, you’ll see a nice chunk of money with your tax returns.

I am a fellow climber as well and stay as healthy as I can. That being said, I never know what will happen to this aging body so I am afraid to only get catastrophic coverage. I guess I start looking at my options for 2022 and keep the healthily incentive programs in sight.

Thanks for the tips and good luck with the autoimmune condition this winter.

Thanks for the audio endorsement and the comments on how the difference is made up at tax time. It was never made clear to us how the difference is handled on actual vs expected.

And as far as healthcare in St. George, somebody has to take care of all these traditional retirees!

Enjoyed the audio format and having the ability to scroll through the details on your post.
I was on an ACA plan for about 9 months one year and it worked well for basics. My income did go up that year and I paid the subsidy difference during taxes the next year.
Glad to hear that you were able to make the subsidies work for your situation. FWIW, I was always really happy with the health care in St George, lots of good medical professionals out there.