Artificially Increasing Income Above Poverty Line to Qualify for ACA Plan? (Florida Problems)

A classmate of mine opened up to me that he had to cut back on his business and work to focus on school, and he is now earning below the poverty line income-wise.

Because of this, he doesn’t qualify for an ACA plan (unless he wants to pay the full $400-$600 premium. He also doesn’t qualify for Medicaid because it’s Florida. So he’s basically SOL and will be hoping nothing bad happens, health-wise, for the next two years of school. Also, our healthcare program requires us to get all these tests and vaccines done to be compliant. My ACA plan covered just about all of it. Meanwhile, he’s going to have to pay $600 just for one of the upcoming tests. I feel really bad for him.

I was in the same boat earlier this year and opted to pick up more work just to stay above that poverty-line income level so I could maintain my marketplace plan.

So I was thinking, is there a way for him to artificially increase his income? He has a personal training business and pays himself through that. Could he have friends/family just pay him a bunch of money to his business and then he pays himself through that to boost his income above the poverty line? Then of course he would immediately pay everyone back. But on paper, tax-wise, it will look like his income is higher and above the poverty line.

Would this idea work? Or is it super illegal and very likely to get caught? I would worry that it would qualify as some sort of tax fraud. But I don’t really know. I’m just spit balling ideas because I feel sorry him.

Just to rant, I can’t believe the most impoverished people in this state get punished even harder for healthcare plans.

submitted by /u/ostrich596
[comments]