Health Coverage Tax Credit (HCTC) via PBGC

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Re: Health Coverage Tax Credit (HCTC) via PBGC

Postby tomindenver » Sun Nov 12, 2017 11:03 am

ckatz01,
In 2016, I got my plan thru OneExchange and used the Avaya $2500 HRA funding. At the end of the year I received an IRS 1095-B Form which means that the plan was not a Marketplace plan (i.e, it was purchased "Off-Exchange"), even though the plan details were identical to the plan shown on the Marketplace exchange web site. If you used the $2500 Avaya funding and not the ACA subsidy, you should also have gotten a 1095-B. If so then it should qualify for the HCTC if you do the same thing for next year. If you received a 1095-A, then it would not qualify for HCTC. I am pretty sure about this, but I am not an accountant. You may want to look thru your tax forms last year and see whether you received a 1095-A or 1095-B. Everyone should get a 1095 showing the kind of health insurance they used.
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Re: Health Coverage Tax Credit (HCTC) via PBGC

Postby tomindenver » Sun Nov 12, 2017 11:23 am

My biggest concern right now with the HCTC is if Tax Reform wipes it out. I did a little research and it looks like even if the bill doesn't pass until early 2018, it will still be in effect for 2018 retroactively to the beginning of the year. I found the full text of the bill (429 pages) at http://documents.latimes.com/read-full- ... -tax-bill/ and did a search for keywords "HCTC" and "health". There were no hits for "HCTC" and one hit for "health" and that hit had nothing to do with HCTC. This is not a guarantee that HCTC won't be messed with, but hopefully it is a good sign. It just seems like a long shot they could pull it off considering how massive it will be to implement ... they will have to come up with new forms, etc and I would think it would be a major change in the IRS software. I was a software engineer and I know how long it can take when you include all the testing, documentation changes, etc ... and we're talking about the government here!

TomInDenver
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Re: Health Coverage Tax Credit (HCTC) via PBGC

Postby Vbaumwald » Sun Nov 12, 2017 11:59 am

Tom my accountant is in agreement with you on that...his biggest concern as well is with tax reform that will be implemented for 2018 if they can get it passed....being the liberal mostly democrat that I am, as well as the eternal optimist, I keep thinking that good will prevail and there is no way they will be able to get anything accomplished in 2018...my accountant however does not necessarily agree with me...I say we cross our fingers and toes and hope that nothing gets done before the 2018 elections
Vickie in Boston
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Re: Health Coverage Tax Credit (HCTC) via PBGC

Postby ckatz01 » Sun Nov 12, 2017 12:28 pm

(Vicki-- I share your sentiments and can only hope.....)

Tom-- thanks for the helpful info. I too got my insurance via One Exchange in 2016, but only have a 1095-C form. However, that's really neither here nor there as it was an Aetna plan, who has since left NC. All that's left in my county are BCBS and CIGNA and everything I can tell is plans are all purchased through the exchange. I worked via One Exchange for 2017, but the rep had to conference in the healthcare.gov and help me purchase via the exchange. This is the same plan I've already purchased for 2018, and did it via a simple renewal on the marketplace exchange. Again, CIGNA's website directs all interested in policies to the exchange. OneExchange confirmed this is probably my best choice of plan. BCBS-- higher premium and also a purchase via the marketplace. I may be making some calls in the next couple of weeks but I think the die is cast for 2018 in NC-- it's a marketplace plan, period. Since my choices are so limited, who knows, maybe I'll be able to file with the IRS for 2018 and have them tell me I'm not eligible. But as far as making any changes to what I purchase for 2018, I think I"m stuck, and will just apply for my $2500 as fast as I can! Thanks again.
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Re: Health Coverage Tax Credit (HCTC) via PBGC

Postby Dave » Sun Nov 12, 2017 12:47 pm

tomindenver wrote:ckatz01,
In 2016, I got my plan thru OneExchange and used the Avaya $2500 HRA funding. At the end of the year I received an IRS 1095-B Form which means that the plan was not a Marketplace plan (i.e, it was purchased "Off-Exchange"), even though the plan details were identical to the plan shown on the Marketplace exchange web site. If you used the $2500 Avaya funding and not the ACA subsidy, you should also have gotten a 1095-B. If so then it should qualify for the HCTC if you do the same thing for next year. If you received a 1095-A, then it would not qualify for HCTC. I am pretty sure about this, but I am not an accountant. You may want to look thru your tax forms last year and see whether you received a 1095-A or 1095-B. Everyone should get a 1095 showing the kind of health insurance they used.


According to Turbo Tax you meet the ACA requirements if you purchase directly through a major insurance.

Below is a screen shot from TT (look at the last line). It sucks for people in states who are forced to go through the exchange but at least for us in Colorado I think the HCTC is an option.
Attachments
Screen Shot 2017-11-12 at 11.46.51 AM.png
Screen Shot 2017-11-12 at 11.46.51 AM.png (181.78 KiB) Viewed 15764 times
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Re: Health Coverage Tax Credit (HCTC) via PBGC

Postby tomindenver » Sun Nov 12, 2017 4:53 pm

ckatz01, I am curious why the OneExchange rep had to conference in healthcare.gov and purchase directly from the exchange for you, particularly since you used the $2500 Avaya subsidy instead of the ACA subsidy. If I go onto the OneExchange site right now and click on the Shop Plans button, it brings up a page with 2 tabs at the top. One tab says, "MarketPlace Plans" and the other tab says "Non-MarketPlace Plans". It might be different for you since you are in another state. But if choosing the $2500 Avaya subsidy, then the Non-MarketPlace Plans should be used. Was there an issue using the OneExchange website for you last year? Anyway, if you already purchased the same plan for 2018, you indeed might be stuck unless there is still time to cancel. Nevertheless, be on the lookout for your 2017 1095 form later in the year. If it is not a 1095-A, you still might be able to use HCTC for 2018 if you purchased the same plan as last year. A 1095-C, by the way, means you used an employer provided plan. In that case, you could still use HCTC but only if the employer paid less than 50% of the premiums.

Regarding HCTC's rule that you have to purchase a plan off the exchange, I really believe the only reason they say that is because they do not allow the ACA subsidy/credit (referred to as PTC in earlier posts) and the HCTC in the same month. It would not surprise me that if you purchased on the exchange but used the Avaya subsidy instead of the PTC, you could probably get away with calling it a qualified HCTC plan, but it would be risky and you might have to haggle with the IRS. But since you already purchased the plan, it sounds like you don't have much to lose. Anyway, good luck going forward. At the very least, hopefully Avaya will still provide their subsidy and you can use that.
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Re: Health Coverage Tax Credit (HCTC) via PBGC

Postby daglover » Sun Nov 12, 2017 5:44 pm

is the Avaya HRA continuing in 2018? No notices or letters........?
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Re: Health Coverage Tax Credit (HCTC) via PBGC

Postby ckatz01 » Sun Nov 12, 2017 10:33 pm

Tom- OMG, if you were in NC I'd find you and give you a great big hug. I went to the Oneexchange site and lo and behold there were the two options; in exchange and not in exchange! And my 2018 plan is listed under both. No problem-- I will repurchase in the "not in exchange" option later in the week (enrollment option open til 12/15 so plenty of time, and I know you know that!) Best news... I called the healthcare.gov people at 11:07 on a Sunday night. They answered right away. I already knew I could cancel a plan at any time. (Canceling before enrollment ends of course, is best.) It couldn't be easier, but for the heck of it, I had the rep walk me through it (what else would she have to do at this hour! They are 24/7. With respect to the website and support, the ACA has come a long way!) So that's done. As to why did I go through the exchange last year, in the first place? For some reason, we discovered that the plan on the Oneexchange site was a few dollars more than on the exchange. The Oneexchange rep said it didn't matter if I wanted to buy the less expensive one (a few buck is a few buck); she'd help me do it. (I am not eligible for ACA subsidies, and had no problem getting my $2500 reimbursement this year.) Net- net: all I have to do is repurchase the plan, but do it on the Oneexchange site. Continue to apply for Avaya's $2500 reimbursement, and hope the pbgc opportunity pans out for 2018. Easy! You've really helped me out here. Thanks so much. Good luck to you!
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Re: Health Coverage Tax Credit (HCTC) via PBGC

Postby Vbaumwald » Mon Nov 13, 2017 6:31 am

It's so great when we can help each other this way. Tom I have sent your post via copy/paste to my accountant ..the post where you discussed all the different credits and talked about running a mock in turbo tax to see what he has to say. He will be back in his office Wed.
Now I have a question...that first year when we first got notified about One Exchange I could not find a rep who knew what they were doing, it was all new to them too...so I got disgusted and went right to the Mass Connector, they were great as we had our Connector up for a number of years by then..that year I did not qualify for any ACA credits so I know I took the Avaya HRA $2500. I can't remember the other years right now, but have you all found the One Exchange folks to be more helpful now...I have never checked them again, because I was so disgusted and because that first year they had no insurance company available that I was willing to take..i.e. Most of my doctors did not accept what they had to offer...has that changed ? Might be worth a look this year..just getting around to all of this shopping
Vickie
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Re: Health Coverage Tax Credit (HCTC) via PBGC

Postby tomindenver » Mon Nov 13, 2017 9:43 am

ckatz01, So glad you found the "not in exchange" plans on OneExchange site and that your same plan is listed there! It should result in you getting a 1095-B instead of a 1095-A at the end of 2018 which in turn should be acceptable proof to apply for HCTC. You should also get a letter after you sign up from your insurance company indicating the plan is "off-exchange" which is what HCTC IRS forms actually ask for for proof. To be sure you get a letter, you may want to call the insurance company after you sign up again and just ask if the letter will come. If they say yes, it will at least give you some piece of mind. If they say no maybe you can request it. The letter is also more preferable because you would need that to get advance premium payments from the IRS to pay your premiums and to know sooner whether you will qualify for HCTC (instead of finding out when you do your takes in 2019). There is an earlier post from me on that.

Vickie, yes, it is nice when we can help each other. We retirees have to stick together and support each other because it is like pulling teeth to get the organizations that are supposed to help to actually do it! Regarding your question about OneExhange ... I also had a horrible time that 1st year. But since then they have been better at least for me. I haven't had long wait times and they seem better educated, but it really depends on who you get. As far as doctors not accepting what they had to offer, I didn't run into that. If you mean doctors wouldn't accept the plans from lesser known companies, I never tried to use any of those plans.

daglover, regarding your question about whether Avaya is continuing the HRA funding 2018, I have pestered both Avaya and OneExchange big time in the last couple of weeks about that. I have been waiting to post here until I get an answer. But I will share what I know at this point ... all Avaya ever says is "you have to call OneExchange". I keep refusing to close Avaya's ticket until they give me a better answer. They are sick of me (the feeling is mutual). I have had better success with OneExchange, but still no acceptable answer. I managed to talk to a supervisor (MaryAnne Carrol). Her initial answer was something like "you will find out if you are getting the HRA funding when you go to make your claim for it". I said we need to know before that because we are considering the HCTC and we need to know in advance to make decisions, etc. I said if OneExchange wants to provide good customer service to us then they need to know whether the funding is coming and how it conflicts with HCTC, etc. Since they are supposed to be our broker then they need to help us sort this stuff out. I was really persistent. She finally "got it" and said she would talk to her manager who would then talk to the manager that does the liaison with Avaya. That was a couple weeks ago. A week ago, I called to get status and they said it has been escalated to their senior mgt and they are waiting to hear from Avaya. So Avaya is even blowing them off!! I was supposed to get a callback last Friday for an update, but they didn't call. My guess is Avaya doesn't know themselves and they might be waiting to come out of bankruptcy before they act on the question. I would encourage all to call both Avaya and OneExchange regarding the HRA funding question so we can get as much pressure on them as possible. If enough people call, it may get through. Geez, what a pain all this is. Anyway, that is what I know at this point, If anyone has more info, please share. Thanks.
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