Only 4% of Americans got it right

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As a follow up to my warning on Health Insurance Tax Subsidies, I offer the following report:

Half Of Those Who Received ACA Subsidies May Have To Repay Government.

Kaiser Health News (3/25) reports in continuing coverage that taxpayers this filing season are facing the ACA’s “financial consequences” for the first time, and experts “say the worst may be yet to come.” A Kaiser Family Foundation analysis found that half of individuals who received premium tax credits in 2014 would have to repay some portion of that subsidy because they underestimated their income. Forty-five percent would get a refund. The average repayment and the average refund “would both be a little under $800.” The piece adds that the “gnarliest filing challenges may yet come from people with complicated situations, such as those who had errors in the IRS form 1095A that reported how much they received in premium tax credits, experts say.”

CNBC (3/25) reports that the Kaiser study “also found that a relatively small group of households will owe back a lot more than the average when it comes to refunds, after their actual incomes ended up being too high to qualify for the subsidies they got.” That group of people will have an average repayment of between $2,306 and $3,837. CNBC notes that higher earners “have no limit on the subsidies they must pay back if they were not entitled to them.”

The Hill (3/25, Ferris) reports the analysis found that just 4 percent of households received the correct subsidy.

 

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