Marketplace and or champVA

[jfrei]

so I am told by the marketplace my family is eligible for 756 tax credit but if they have champva they get no Credit? Why on earth would I keep champva? Does this sound right..

[broncovet]

The reason sounds pretty simple:  Champva is the best insurance you can buy.  You paid for it with your military service injuries.    If you buy "market" insurance you will likely pay  more and get less.  (Everything is more than Champva if you are eligible for it).  

Keep Champva, and forget the tax credits.  Remember, tax credits go against taxes you owe.  So, if you owe zero taxes, you dont get money back, like you would with EIC.  If you are not making money in the workforce (and I doubt you are), then tax credits are worth "0" to you.  Of course, you want to check with your accountant for your state and your finances, Im only saying that tax credits are worth zero to me because I dont have to pay taxes since I dont have almost no other income than non taxable VA.  

[seminoles]

I only dealt with the marketplace with my daughter when she turned 23 and lost Champva.........in college and we live in a state that didn't expand medicaid.  She was hospitalized 10 days after her 23rd birthday for a severe chronic health condition.  Yep, had to bs her way onto the marketplace by saying all her scholarships and financial aid were income.  Trust me, champva is far better and she has the best plan on the marketplace, I ensured that ;)

[seminoles]

Oh, and the tax credit works like this..........it goes against the premium you would pay for the plan so my daughter is a destitute college student really and pays $5 for a gold plan on the marketplace because she receives a hefty tax credit.  She doesn't actually get that money, it is applied toward her premium and when she files her taxes at the end of the year........if she makes a lot more money that she said she did, then she would have less of a credit and owe uncle sam.  So, like Bronco stated you aren't actually receiving the $$ in your pocket it goes toward a premium for a plan on the marketplace, which you honestly don't need if you have champva. 

[broncovet]

Some people may not understand this:  Insurance is designed to put you in the place before the loss (financially).  Its also designed you can not profit from it through things like getting 10 health insurance policies, and trying to collect on all 10.  If you have 10 policies, the most you can collect is the hospital bill, the other nine dont send you extra money.  Sometimes 2 insurancee policies work good and cover your deductables or co pays, but its never designed for you to profit from your hospitalizations/car wrecks. fires/etc.  

[jfrei]

Update.   I never would want to profit from insurance. But blue cross blue shield Only covered so much of my families medical and whatever else I turned into champva to cover the little leftover. But when I went to add my son on my wife's bcbs they said son was denied chip and Medicaid and our credit for the family is 756 so it came to 155 a month 700 deductible , but she said she didn't know if I could have champva for them and still get tax credits. Either way apparently they are all under champva backdated from 11/11/2016 and their policy would begin in September if I kept the other policy too. My issue is we turned in all the bills from my sons delievery that her insurance didn't cover into ChampVa so if what she said is true will Mr Tax collector call for my credits from November into June when they were technically under Champva care but wasn't official until this month? My wife's boss said he would pay the premiums for her dental and medical since she got her masters degree in their job field. He was going to give her a stipend each month we were thinking keep champva use the stipend towards their deductible... He's ok with that then I'm dropping the marketplace keeping the tax credits.,. But my concern is all the credits I was given will have to be returned since Vachamp was backdated when they were given? Should I be concerned?

Edited July 28, 2017 by jfrei

[seminoles]

I don't think you understand how this all works, you don't get the tax credits if you don't buy the insurance on the marketplace.  Of course, if you buy insurance through your employer or are self employed etc. those things are taken off your taxable income, it becomes quite complicated.  My husband is self employed and we hire a professional to advise us.  If her boss will give her an amount of money toward insurance, that isn't a tax credit that is income according to the government and will be taxed as such.  I would advise you to talk to a cpa about this, not h and r block, an actual CPA.  Use champva and buy a dental plan through the VA for your family if your wife doesn't have one through work that is better or less expensive.  We have taxable income every year, we actually pay taxes on part of my SSDI because my husband works, we itemize we hire a CPA because things are complicated ;)  EVERYONE has different circumstances but when you are in a situation that you have already stated you are having a hard time keeping your home, do not add another bill you don't need.  You should not need another health insurance other than champva.  If your wife is working then I would go see a financial planner/advisor and figure out the best option financially. 

 

Edited July 28, 2017 by seminoles