Accurate Income Projection Important for Obamacare Subsidies

Published 03/10 2014 05:19PM

Updated 03/10 2014 05:49PM

As medical providers work out the kinks with the new coding and billing system, there are some hidden costs to patients who are receiving subsidies.

According to local insurance agent Kelly Fristoe , since subsidies are decided on your projected future income, it is important to note any changes. Fristoe says if you don't, it could affect your tax refund next April.

Fristoe says if you receive a subsidy now and you make more money throughout the year than you originally put on your application, come tax season you could have to pay part of that subsidy back.

And if you make less money then you expected, you could get some extra subsidy money come April.

“You've got to project your income accurately, any changes that take place, in fact. They agree on the marketplace application that if any changes take place other then what they put down, you've got to contact the market place and let them know what those changes are so they can adjust those subsidy, says Fristoe.

Fristoe says any income counts toward your subsidy eligibility. Even if you win the lottery or hit it big at a casino, that could affect your insurance cost.

Copyright 2015 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Featured Coupon


Featured Business