Question: How do they (Covered California) keep track of what your subsidy should be if your income changes frequently?
Answer: Subsidy recipients will be required to report any change of income that may result in a change in the amount of their tax credit or cost sharing reduction. This requirement will enable consumers to adjust their advance premium subsidy accordingly based on their needs, which will help minimize repayment of excess advance tax credit taken during the benefit year. It will also help to provide more affordable coverage when income goes down. And just in case a consumer forgets to report income changes, there will be an annual redetermination process during the fourth quarter open enrollment period each year.