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You said he pays $350 a month. Unless he’s rather young, that seems exceptionally low for an ObamaCare exchange policy.

He's 52.......

You also said his income was 25k a year, which would mean he would qualify for subsidies.

You sure about that? Unless I'm mistaken, nobody will really know until they file their 2014 income taxes........Am I wrong?

A 52 year old man living in Michigan is supposedly entitled to a $268 a month subsidy for his insurance. When you sign up, especially through healthcare.gov, the subsidy is applied to the premiums before you pay the remainder.

An average plan is $559.71 a month, after subsidy would be 290.94 excluding extras (some plans offer a little more, regional differences in costs, etc.)

You sure about that? Unless I'm mistaken, nobody will really know until they file their 2014 income taxes........Am I wrong?

If you know what your monthly income is and it isn't likely to go up during the year, it is safe to take the subsidies if eligible. It looks like your friend in post 16 is eligible for additional cost sharing subsidies that go into effect for income under 250% of the federal poverty level. Those subsidies include reduced copays and deductibles. If his income goes above 250% of FPL after getting reduced copays, he would have to pay back the difference. The next big line in the sand is at 400% FPL. That is when you lose the subsidies all together.

I can foresee problems with unexpected taxable events pushing some people over the limits. Working overtime, cashing out a 401K, and inheriting a traditional IRA are a few examples that could cause problems.