This client is a married, self-employed cosmetologist.
Due to her spouse’s income, her income had been above 400% of the federal poverty level (FPL). In 2016, her spouse retired. Her income declined. As a result, in 2017 she qualified for the Affordable Care Act advance premium tax credit (APTC) subsidy.
Her husband died in September.
When I was planning my client’s 2018 coverage, this is what we discovered: If my client can keep her total income (self-employment plus pension) below $48,240, her bronze plan will cost $218 per month, or less.
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But, if her modified adjusted gross income (MAGI) exceeds $48,240, she will lose her entire APTC, boosting the premium to $882 per month.
(Related: Gross, But Adjusted)
Of course, how my client’s income, and MAGI, will interact with the APTC cut-off cannot be predicted exactly.