60.07 Applicable percentage83

In general. The applicable percentage multiplied by a tax filer's household income determines the tax filer's required share of premiums for the ABP. This required share is subtracted from the monthly premium for the ABP when computing the premium-assistance amount. The applicable percentage is computed by first determining the percentage that the tax filer's household income bears to the FPL for the tax filer's family size. The resulting FPL percentage is then compared to the income categories described in the table in paragraph (b) of this subsection (or successor tables). An applicable percentage within an income category increases on a sliding scale in a linear manner and is rounded to the nearest one-hundredth of one percent. For taxable years beginning after December 31, 2014, the applicable percentages in the table will be adjusted by the ratio of premium growth to growth in income for the preceding calendar year and may be further adjusted to reflect changes to the data used to compute the ratio of premium growth to income growth for the 2014 calendar year or the data sources used to compute the ratio of premium growth to income growth. Premium growth and income growth will be determined in accordance with IRS-published guidance. In addition, the applicable percentages in the table may be adjusted to taxable years beginning after December 31, 2018, to reflect rates of premium growth relative to growth in the consumer price index. (b) Applicable percentage table for APTC84 Household income percentage of FPL 2014 initial percentage 2014 final percentage Less than 133% 2.0 2.0 82 Examples to illustrate the rules of this subsection can be found at 26 CFR § 1.36B-3(f)(9). 83 26 CFR § 1.36B-3(g). 84 For taxable years after 2014, the applicable percentages in the table will be updated in accordance with IRS-published guidance, available at: www.irs.gov. For example, the applicable percentage table for 2015 is located at: http://www.irs.gov/pub/irs-drop/rp-14-37.pdf. Eligibility-and-Enrollment Procedures Part 7 – Page 36 (Sec.60.00, Sub.60.07) At least 133% but less than 150% 3.0 4.0 At least 150% but less than 200% 4.0 6.3 At least 200% but less than 250% 6.3 8.05 At least 250% but less than 300% 8.05 9.5 At least 300% but not more than 400% 9.5 9.5 (c) Applicable percentage table with the Vermont Premium Reduction.85 The State reduces the APTC’s applicable percentage by 1.5% for an individual expected to have household income, as defined in § 28.05(c), that does not exceed 300 percent of the FPL for the benefit year for which coverage is requested. Household income percentage of FPL 2014 initial percentage 2014 final percentage Less than 133% 0.5 0.5 At least 133% but less than 150% 1.5 2.5 At least 150% but less than 200% 2.5 4.8 At least 200% but less than 250% 4.8 6.55 At least 250% but not more than 300% 6.55 8.0 More than 300% but not more than 400% 9.5 9.5 (d) Examples. The following examples illustrate the rules of this subsection with respect to the applicable percentage for federal premium assistance: Example 1. A's household income is 275 percent of the FPL for A's family size for that benefit year. In the table in paragraph (b) of this subsection, the initial percentage for a tax filer with household income of 250 85 For updated applicable percentage tables with the Vermont Premium Reduction, go to: http://info.healthconnect.vermont.gov/financial-help. Eligibility-and-Enrollment Procedures Part 7 – Page 37 (Sec.60.00, Sub.60.08) to 300 percent of the FPL is 6.55 and the final percentage is 8.0. A's FPL percentage of 275 percent is halfway between 250 percent and 300 percent. Thus, rounded to the nearest one-hundredth of one percent, A's applicable percentage is 7.28, which is halfway between the initial percentage of 6.55 and the final percentage of 8.0. Example 2 (i) B's household income is 210 percent of the FPL for B's family size. In the table in paragraph (b) of this subsection, the initial percentage for a tax filer with household income of 200 to 250 percent of the FPL is 4.8 and the final percentage is 6.55. B's applicable percentage is 5.15, computed as follows. (ii) Determine the excess of B's FPL percentage (210) over the initial household income percentage in B's range (200), which is 10. Determine the difference between the initial household income percentage in the tax filer's range (200) and the ending household income percentage in the tax filer's range (250), which is 50. Divide the first amount by the second amount: 210-200 = 10 250-200 = 50 10/50 = .20. (iii) Compute the difference between the initial premium percentage (4.8) and the second premium percentage (6.55) in the tax filer's range; 6.55 -4.8 = 1.75. (iv) Multiply the amount in the first calculation (.20) by the amount in the second calculation (1.75) and add the product (.35) to the initial premium percentage in B's range (4.8), resulting in B's applicable percentage of 6.65: .20 x 1.75 = .35 4.8 + .35 = 5.15.