r/HospitalBills 12d ago

Good bill

[deleted]

32 Upvotes

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13

u/Cultural-Ad1121 12d ago

I believe your 401k does not affect ACA requirements. That is not earned income.

And the hospital cannot negotiate with you if they have an in network contract. It would violate their contract with the insurance.

8

u/krankheit1981 12d ago

Doesn’t it count as income if it’s pulled early? It’s also heavily penalized and taxed.

6

u/EmZee2022 12d ago

Not if the owner is over 59 and a half, I think. And the OP is 64, if she's that close to Medicare age. I do not know what impact it has on ACA subsidy eligibility.

I assume the OP has some kind of high deductible insurance with a high OOP limit, which would explain such a high balance owed.

To be honest, I'd suggest considering bankruptcy rather than taking money from the 401(k). 401(k) and IRA money is largely protected from bankruptcy and lawsuits.

2

u/HidingoutfromtheCIA 12d ago

Roth IRAs generally do not count as income for ACA purposes. Regular 401ks do count as income. 

1

u/Educational_Leg7360 12d ago

wrong. you can ALWAYS (not that every facility will). negotiate for the patient responsibility part of the bill. that’s between the facility and the individual. you cannot negotiate an in-network contractual adjustment and insurance reimbursement amount.

1

u/Bulldogmom56 12d ago

Didn’t know that about network contracts.
As for my 401k I’ve had to dip into to help pay for ACA premiums for the last 5 years and they have taxed me on it as well as raised my income level to the pint I make $5000 above what financial aid will pay.

1

u/ChewieBearStare 12d ago

Assuming it's a traditional 401k, that's how they work. You don't pay taxes now; you pay taxes when you withdraw the funds. (OP, I'm just explaining for other people here, not implying that you didn't know that).

1

u/BostonDogMom 12d ago

Too late for OP but for everyone else: THIS IS WHY HSAs EXIST. If OP put $10,000 in an HSA over the course of their career, they can withdraw the money to cover copays, deductibles, etc both before and after Medicare eligible without a tax penalty.

3

u/Bulldogmom56 12d ago

We did, when he got on Medicare the rules changed and they wouldn’t let him. As for me I exhausted mine in previous dr bills.