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Tuesday, September 30, 2014

400,000 Americans At Risk to Lose Their Health Insurance Subsidies -- Find Out Why

September 30, 2014, was the deadline for over 400,000 Americans to either verify their employment or risk losing their health insurance subsidies. What's the problem? They have not yet provided adequate proof of employment or citizenship.

Who is at risk

It is estimated that about 300,000 Americans are at risk of having to pay back their subsidies because they have not provided the necessary tax returns, wages and tax statements, pay stubs and letters from employers that documents their eligibility to receive subsidies on their health insurance costs. When they signed up for health insurance through the federal HealthCare.gov site, they were asked to estimate what their income would be in 2014. If the information did not match their 2012 tax returns, further documentation was required to be provided.


The other 100,000 at risk are those who didn't provide adequate information to verify their citizenship status. Both groups are at risk of having to pay back their government subsidies when they file their taxes next spring. Instead of getting a refund, they may owe more on taxes than they anticipated. The IRS estimates repayments to be between $300 and $2,500 for lower wage earners, but those who earn higher wages may be required to pay back the full amount.

States may be affected

The 400,000 estimate includes just those who signed up for health care insurance on the federal health care web site. States who chose to set up and manage their own health insurance exchanges may also be experiencing similar issues with missing or inadequate information. California, for example, is sending out letters to residents who need to verify or update income information.

To read more on this topic from the Wall Street Journal, visit online.wsj.com/articles/hundreds-of-thousands-face-health-law-subsidy-deadline-1412006417
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