One of these health insurance subsidies is the premium tax credit which helps pay your monthly health insurancepremiums.
Premium subsidies are available in thehealth insurance marketplace/exchangein every state.
Most exchange enrollees qualify for subsidies.
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How Do I Apply for the Premium Tax Credit Health Insurance Subsidy?
Apply for the premium tax credit through your stateshealth insurance exchange.
If you get your health insurance anywhere else, you cant get the premium tax credit.
There is no cost for their services.
Will I Qualify for the Subsidy?
Federal poverty level (FPL) changes every year, and is based on your income and family size.
you could look up this years FPLhere, andthis article explains how income is calculatedunder the ACA.
Subsidies are available through at least 2025 to smooth out these discrepancies.
And again, the prior year’s FPL figures are used to determine premium subsidy amounts.
But even if you meet the income qualifications, you may still be ineligible for a subsidy.
That would be the case if:
How Much Will My Subsidy Be?
The exchange will calculate your premium subsidy amount for you.
it’s possible for you to also usethe Kaiser Family Foundation’s calculator.
Can I Save Money By Buying a Cheaper Plan, or Must I Buy the Benchmark Plan?
You may buy any bronze, silver, gold, or platinum plan listed on your health insurance exchange.
However, you wont get the excess subsidy back.
However, its only available to people who choose a silver-tier plan.
You dont have to wait until you file your taxes.
Most enrollees get the premium tax credit in advance, paid directly to their insurance company each month.
This option is only available if you enrolled in a plan through the exchange.
If the estimate is wrong, the subsidy amount will be incorrect.
If you earn less than estimated, the advanced subsidy will be lower than it should have been.
Youll get the rest as a tax refund.
That’s the form for reconciling (or claiming in full) your premium tax credit.
How Do I Get the Money?
This could mean a big tax refund.
What Else Do I Need To Know About How the Health Insurance Subsidy Works?
The exchange can re-calculate your subsidy for the rest of the year based on your new information.
FPL for 2023 (used for 2024 coverage) is$14,580 for a single individual.
The majority of exchange enrollees qualify for these subsidies.
Kaiser Family Foundation.How the American rescue plan act affects subsidies for marketplace shoppers and people who are uninsured.
Centers for Medicare and Medicaid Services.Effectuated enrollment: Early 2023 snapshot and full year 2022 average.
HealthInsurance.org.Find Medicaid coverage in your state.
Internal Revenue Service.Revenue procedure 2023-29.
H.R.1319, the American Rescue Plan Act.Section 9661: Improving affordability by expanding premium assistance for consumers.
HealthInsurance.org.An SEP if your income doesn’t exceed 150% of the federal poverty level.
