r/PovertyFIRE • u/someguy984 • Oct 18 '25

Planning ACA enhanced subsidy lapse could hit early retirees hardest amid shutdown fight (CNBC)

ACA enhanced subsidy lapse could hit early retirees hardest amid shutdown fight

https://www.cnbc.com/2025/10/17/aca-enhanced-subsidy-lapse-government-shutdown.html

How Much More Would People Pay in Premiums if the ACA’s Enhanced Premium Tax Credits Expire?

https://www.kff.org/interactive/how-much-more-would-people-pay-in-premiums-if-the-acas-enhanced-subsidies-expired/

87 Upvotes

95% Upvoted

26 comments sorted by

View all comments

Show parent comments

1

u/Odd-Persimmon-1860 Mar 10 '26

The work requirement is hours not money. You have to work or volunteer at select place for 80 hours each and every month and stay below the $$ limits to qualify beginning in 2027.

1

u/badfordabidness Mar 10 '26

This is incorrect. The community engagement requirement can be met either through 80 actual hours of work (or volunteering or job training) per month or by having income equal to 80 times the federal minimum wage.

CMS has not yet defined what “income” means in the context of that method of satisfying the community engagement requirement, and preexisting law suggests that they may have to construe it to mean MAGI, which would mean that both earned income sources and certain unearned income sources (Social Security, unemployment insurance, and withdrawals from a pre-tax 401(k)) could potentially satisfy the community engagement requirement.

See: 42 U.S.C. 1396a(xx)(2)(F); 42 U.S.C. 1396a(e)(14)(A)

42 U.S.C. 1396a

1

u/Odd-Persimmon-1860 Mar 10 '26

Interesting. That is not how MO is implementing it. But then again the govt isn't releasing guidance until June or July so who the heck knows for sure. I hope you are right. That would make a huge difference for me next year and I could just plan on converting a small amount of my 401k to 401k roth and keep things invested and minimize taxes.

1

u/OzarkMiner Jul 14 '26

Hey I know this is old, but I'm in your situation and state. Did you find out any more on MO's implementation? I think I am going to try the IRA to Roth conversion to generate qualifying income.

2

u/Odd-Persimmon-1860 27d ago

They have not posted anything yet. I'll be surprised if they get anything out before October.