How much is this going to cost???
One of the most important factors to consider when looking at individual health insurance is what kind of subsidy you can expect to receive in the Obamacare Marketplace.
These subsidies, technically called “Premium Tax Credits,” can make a huge difference in how much you pay for individual health insurance.
How to Know if You’re Eligible for an Obamacare Subsidy
Obamacare subsidies are a function of your household income and your household size, and how that relates to the Federal Poverty Level.
According to the Affordable Care Act, your household has to be between 100% and 400% of the Federal Poverty Level in order to qualify for subsidies. We’ll go over this in more detail below, but first let’s get to the numbers.
Federal Poverty Level Guidelines for Obamacare 2020
- The income number you need to use is your adjusted gross income. (This is the part where we remind you we don’t handle taxes or offer advice on taxes.)
- If you are eligible for an employer-sponsored group health insurance plan, you’re not eligible for premium tax credits (subsidies).
- If you make more than 400% of the Federal Poverty Level, you should look at off-Marketplace plans – contact us for help with that.
If you make between 100-250% of the Federal Poverty Level, you will also be eligible to receive “Cost-Sharing Reductions” that lower the out-of-pocket costs on plans at the silver level.
There are actually 3 different levels of cost-sharing subsidies:
- 100-150% of FPL
- 150-200% of FPL
- 200-250% of FPL
The lower your income, the lower your out-of-pocket costs. So if you fall into this category, you will definitely want to consider silver plans because you’ll get much, MUCH more bang for your buck.
You can get an estimate on your subsidy amount and how it impacts your prices here: