What happens if you over-estimate your income on your ACA application?

Hi, I about to re-up my existing ACA Bronze plan but unfortunately I'm looking at not having my usual, steady self-employment income come January. Folks here said to adjust my income in my application as it changes, I get that. I also get that if you under-estimate your income, you may be penalized at tax time. But what happens if you over-estimate your income and make less in the end? Is that worked out at tax time too?

Also, before I got the bad news about my income going away after December, I was about to move from a Bronze to a Silver plan, but obviously now I'm worried I won't be able to afford it as the Silver plan is about $150/month more. Or should I not look at it that way because, when I report my big drop in my income come January, the Silver plan will then be more affordable due to me hopefully getting a bigger tax credit? (Heck, I guess even Medicaid could enter the picture if I don't land a new job.) But moving to Silver still feels weird since I won't know if or when I will land new work. Do you have a suggestion? Stay with my Bronze and report all income changes, or get the Silver and hope I get a bigger tax credit and hopefully a decent job to cover the Bronze to Silver difference?

Also, what happens when you do lower your income in the ACA application, will the insurance company start billing me less each month for my premium or does that too just get worked out at tax time somehow? Thanks!

submitted by /u/MidWesting
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