Health Insurance Subsidies
The Affordable Care Act (ACA) requires everyone to have health insurance coverage. While some people are covered through federal programs such as Medicare or Medicaid, others get their health insurance coverage through their employers. In addition, some sets of people are required to buy an individual health insurance plan, which can be costly. Fortunately, you can save money by applying for health insurance subsidies if you’re planning to purchase coverage on your own.
What Are Health Insurance Subsidies?
The government offers a health insurance subsidy to help people cover the cost of health insurance plans. The amount you will be subsidy depends on your income. Here are the types of subsidies you might qualify for:
Premium tax credit subsidy: It covers a portion of your monthly health insurance payment. Depending on your eligibility, you could pay a small amount of money on your monthly premium.
Cost-sharing subsidy: This subsidy helps lower the cost of receiving care, including your coinsurance/copay, deductible, and sometimes your out-of-pocket maximum.
How To Qualify For Health Insurance Subsidies?
Unfortunately, health insurance subsidies are not offered to everyone. Your eligibility is determined based on three factors:
Income: You will qualify for subsidies if you make the equivalent of or less than four times the amount of the federal poverty limit.
Family size: The number of people in your household will determine your family’s Federal Poverty Level.
Cost of health insurance: The higher the price of health insurance plans in your area, the more likely you are to qualify for subsidies.
If you want to know if you’d qualify for a health insurance subsidy, contact your insurance agent.