Success getting healthcare coverage for immigrant parents over 65

[databit 328]

14 hours ago, databit said:

^^^ Umka36 is correct, Medicare would be $547 per person (although this may be higher in 2018) and that a supplement (to pay the 20% Medicare does not pay) which averages $175-$200 additional per person = $722 to $747 per person. So maybe the $1600 was for both parents total?

I should add, since the parents were eligible to buy into Medicare at least 1 year ago (they were in the US for 5 years at that point), they would need to pay a 10% late enrollment penalty per month for Medicare Parts A and B. The part A penalty lasts twice as long as the time they should have signed up--for example, if were late signing up by 1.5 years,  the penalty goes for 3 years. But the Part B penalty is forever.

[ruby4779 0]

So what are my options to get them health insurance. 

[ruby4779 0]

So house hold of 6, combined gross income of $184k.  How much do i have to pay for my parents medicare premium.

[Boiler 45,731]

you could self fund their medical costs and they can pay the fine.

[databit 328]

2 hours ago, ruby4779 said:

So house hold of 6, combined gross income of $184k.  How much do i have to pay for my parents medicare premium.

You need to go to an insurance broker, and your tax accountant! There are a number of factors here. The broker may advise you not to claim your parents, because it appears that not only was the Medicare price quote you received was including the late enrollment penalties, but also contains an extra charge because the taxable income of $184k is high. So your parents as your dependents would be charged the "Income Related Monthly Adjustment Amount (IRMAA)." IRMAA is an extra charge added to the premium.

 

But even if you don't claim them on your taxes (and you lose the deductions for them, thousands of dollars) and they file in January for 2017 as zero income (or if they have assets or income from somewhere, their own income), they will still have the late penalties, and will still need supplemental policies for Medicare---so figure you are still looking at possibly $900 per month each (more or less). That is why you need to consult an insurance broker, and your tax accountant. 

[Boiler 45,731]

1 hour ago, databit said:

You need to go to an insurance broker, and your tax accountant! There are a number of factors here. The broker may advise you not to claim your parents, because it appears that not only was the Medicare price quote you received was including the late enrollment penalties, but also contains an extra charge because the taxable income of $184k is high. So your parents as your dependents would be charged the "Income Related Monthly Adjustment Amount (IRMAA)." IRMAA is an extra charge added to the premium.

 

But even if you don't claim them on your taxes (and you lose the deductions for them, thousands of dollars) and they file in January for 2017 as zero income (or if they have assets or income from somewhere, their own income), they will still have the late penalties, and will still need supplemental policies for Medicare---so figure you are still looking at possibly $900 per month each (more or less). That is why you need to consult an insurance broker, and your tax accountant. 

I agree with all the above bit would clarify the issue is about tax credits not additional premium, I assume with an income that high you do not get any tax credits.

 

Now of course the whole issue of credits is up for grabs, what will happen in the future is a big unknown and immigrating elderly relatives has always struck me as brave.

[Umka36 781]

ruby4779 go talk with a CPA or tax professional about the premium tax credit. I haven't heard anyone post the results after speaking to such person on whether the parent can claim zero or a tiny income and qualify for the premium tax credit. One of the requirement to claim the premium tax credit is that you cannot be claimed by someone which is different the choosing not to be claimed. If you do, please let us all know the results.

 

Again I can only speculate that your parents probably received benefits when they were not entitled to. Can you please clarify what you mean  by your parents owing them $1,600/month or that's what it will cost to get them in Medicare. There's a difference. I recommend contacting Medicare to get a clearer explanation if it doesn't make sense.

 

https://www.medicare.gov/forms-help-and-resources/contact/contact-medicare.html

[Boiler 45,731]

Seems these threads never get updated, has been raised enough times so somebody has made it to the end.

 

I assume never checked that tax credits are only of value to the extent you pay tax and can offset.

[databit 328]

5 hours ago, Boiler said:

Seems these threads never get updated, has been raised enough times so somebody has made it to the end.

 

I assume never checked that tax credits are only of value to the extent you pay tax and can offset.

Agree. And ACA is no bargain without the credits. Medicare may end up being cheaper if the parents are taken off the taxes. $900 a month each may be the best they can get.

[Boiler 45,731]

They were talking about on on the Radio today, one ;person had seen a 9 fold increase from the pre Obama price.

Edited November 16, 2017 by Boiler

[ruby4779 0]

Umka36 Invoice is for  month of 12/1/2017-12/31/2017.   I have not had chance to go to Social Security office to get clarification.

Boiler what is 9 fold increase?  You mean prices are going to go up for Obama care.

[Umka36 781]

ruby4779, yes in most cases ACA plans have increased in premium yearly. In my state, they expect an increase of over 20% on average for 2018 (1% in 2015, 4% in 2016, 11% in 2017 respectively). Part of it is due to the uncertainty from President Trump and Congress, but I believe it would have happen no matter what in the end. You need everyone paying into the ACA or it won't survive, but many young folks aren't going to pay into a system in which they cannot use the benefits and just pay the penalty (it's due to the high deductible, monthly premium, or a combination of the two). Last I hear, Congress is trying to strip the penalty out which would basically mean the end of ACA in my opinion.

 

You really do need to contact Medicare about the invoice for your parents as $1,600 monthly is not normal even with late penalty registration of 10%/year. 

Edited November 16, 2017 by Umka36

[ruby4779 0]

Thank you everyone for your help.  I will update you guys as soon as I get this sorted.

[Boiler 45,731]

The guy on the Radio went from $200 pre Obama to $1800 now, I am sure an exceptional case

 

Think it was a 30% increase in CO for OCare this year in CO.

 

The Exchange price for a Gold Plan would be well over $1000 pm for someone just under 65.

[MCMM 0]

On 1/20/2016 at 12:20 PM, missads said:

At the risk of repeating other posts, I just wanted to share my experience of being able to find affordable health insurance for my parents. Here are some details:

Parents - over 65, here on Green Card (permanent residents)

Living in the US for less than 5 years (about 2 years)

Eligible for tax subsidy through Obamacare (this does NOT constitute a public charge)

Residents of State of Michigan, have social security numbers

Eligible for Silver level insurance plans

Filed their $0 federal/state taxes jointly, separate from mine (I do NOT claim them as dependents on my tax return - this is important)

I had searched the healthcare.gov website last year for insurance for them and came up empty handed. We purchased "travelers insurance" online (***removed***) but got shafted. My parent had a major health incident and they didn't cover anything (all claims were denied as pre-existing condition) Stay away from these types of insurance.

I tried healthcare.gov again this year and couldn't find anything again. Many seem to assume, wrongly, that everyone over 65 is eligible for Medicare by default. This isn't true for immigrants, they need to have lived in the US for at least 5 years before they can participate in Medicare.

Anyway, the short story is healthcare.gov has still not caught on to this. If you want to purchase health insurance, you will need to work with a healthcare navigator. There are several public service organizations that have these navigators who will help you for free. They will help you do the application over the phone, and then it works just fine. I am in Michigan and went through Jewish Family Service. Have your parents green cards and SSN handy, that is all they need.

There appears to be a widely held misconception that immigrant seniors over 65 are not covered by Obamacare. This is absolutely NOT true. You don't have to wait for 5 years for Medicare to kick in. Recent immigrants older than 65 can purchase health insurance via healthcare.gov, just like any other US citizen or legal permanent resident. Some state exchanges might not know it, the person you talk to on the phone might not know it, the healthcare.gov website certainly doesn't appear to understand this special situation, but trust me parents on green cards who have been in the US less than 5 years ARE eligible for subsidized health coverage.

I was able to get health insurance for my parents who have no income, for around $100 a month per parent (after a $1000 tax subsidy, because their income is less than limit of ~$21K) Now that is REALLY affordable, and it is proper mainstream insurance (Blue Cross Michigan) None of that travelers' insurance BS.

Just trying to get the word out, because the open enrollment deadline is January 31st. If your parents arrive after Jan 31st, you can still sign up at that time, because their arrival date qualifies as a special "life event". But if they are already in the US, please sign up by Jan 31st. Otherwise they will have to wait until November for the next enrollment period to begin.

Hi Missads. Thank you for this information. What I don't understand is: in order for your parents to qualify for a Premium Tax Credit in the Marketplace as Aliens lawfully present in the USA whose income is less than 100% of the Federal Poverty Line for their family size, they are supposed to have to qualify as an Applicable Taxpayer, which means they CANNOT be claimed as dependents by anyone. I understand you DID NOT claim them as dependents, that is clear. But my question is: couldn't you have (I am assuming you support them financially to some extent), or better said, don't you HAVE TO? Because if they CAN be claimed as dependents by someone, they cannot receive the Premium Tax Credit, or at least that's what I understand form my online research (Instructions to Form 8962 attached). Can anyone please shed  a light?

Thank you!

i8962(2).pdf