Math/reasonability Check - CHP+ eligibility

In Colorado there is a program called CHP+, which is low cost healthcare for children and pregnant women in families that make <260% the federal poverty level for their family size, but too much to qualify for Colorado’s Medicaid program.

We’re expecting a baby this summer and are trying to figure out our insurance/healthcare options for her.

(PS, I’ve gotten the advice of just apply and find out but I actually can’t apply for the baby until the baby is literally here)

Are any of my reads on the info wrong? Is there any reason I would want baby to be on marketplace insurance if they could qualify for this?

  1. At an annual income of $65000/year or $5416.66 monthly gross income, we nowhere near qualify as a family of 2 and don’t quite qualify (am like $30 over monthly) as a family of 3 once baby is here. Source pic:

  1. I can contribute to an IRA to sneak into these limits.

This source seems to say contributions to an IRA reduce your income for these purposes, but contributions to an employer-sponsored 401k do not (PDF):

https://www.google.com/url?sa=t&source=web&rct=j&url=https://hcpf.colorado.gov/sites/hcpf/files/MAGI%2520based%2520Medicaid%2520and%2520CHP%252B%2520Deductions%2520FAQs.pdf&ved=2ahUKEwi2yci9h7f-AhUhlmoFHSwAAiAQFnoECB8QAQ&usg=AOvVaw3QW6-FhXDbfj7wTCDug5X9

Relevant screenshots:


This source seems to suggest I’m within the income limits to deduct contributions up to the max from my income:

It also seems like I may get 50% back as a saver’s credit. Do I need to double my minimum contribution to compensate for this?

  1. Worthwhile-ness
    My husband and I have different insurance through the marketplace – he’s self employed and I’m part time, and neither of us have employer provided options.

Based on what I’ve read, my insurance is the one I can enroll a newborn on. Mine is very expensive, as I got a gold plan figuring I would absolutely hit my deductible and could hit the OOP max if I had a complicated labor.

So assuming baby’s insurance would cost a similar amount, it could be like… 500 a month I think? More? No idea what our income-based adjustment could change by to cover a bit of it.

I can’t find the enrollment cost for this year - in 2020 it maxes out at $105 annually.

Here is what different copays would be.

And out of pocket max for enrolled members in a household is 5% of family income, or about $3k for us. Waaay better than the $7500 OOP max for my insurance.

Here’s an article about the Birthday rule. I didn’t re-read it right note but iirc, whichever of you have an earlier Birthday in the year (ex: January vs July) need to be the primary insurance the baby is added to.

I didn’t have to deal with this because we were all on my insurance anyway.

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It looks like I’m not required to use one of our insurances if she qualifies for CHP? But that’s part of why I’m looking into it, my bday is first and it’s v expensive.

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