The Affordable Care Act (ACA) has increased options for Americans looking for good, affordable health insurance plans. The government provides two types of subsidies for Americans with low to moderate incomes: premium tax credits and cost-sharing reductions. In addition to subsidies, a private insurance marketplace such as HealthMarkets Insurance Agency can help you find affordable insurance plans.
Premium Tax Credit Subsidies
If you qualify, you then have the option to apply all, some, or none of the estimated credit. The credit is sent directly to you, the insured, or the credit is sent to the insurance company directly and applied to your monthly premiums. You also may be eligible to claim the credit when you file your tax return for the year, which will either increase your income or lower the amount of taxes owed on that return.
According to the IRS, you can be eligible for the premium tax credit if you meet all of the following requirements:
- Utilize a health insurance marketplace to purchase insurance (an agent can help you with this).
- Have a household income between 100 and 400 percent of the Federal Poverty Line.
- Are not able to get affordable coverage through an eligible employer plan that provides minimum value.
- Are not eligible for coverage through a government program, like Medicaid, Medicare, CHIP or TRICARE.
- Do not file a Married Filing Separately tax return.
- Cannot be claimed as a dependent by another person.
If you have coverage through your employer, you may not be eligible for tax credits. However, if your company offers a plan that costs more than 9.5% of your income or that does not cover at least 60% of the cost of covered essential benefits, you can look for a more affordable plan for your medical needs and apply for tax credits.
Cost-Sharing Reduction Subsidies
Cost-sharing reduction subsidies reduce out-of-pocket expenses in the form of deductibles, coinsurance, copayments, and other out-of-pocket charges. People eligible for cost-sharing reductions pay these when they use medical services covered by their health plan.
You are eligible for a cost-sharing reduction subsidy if your household income is between the Federal Poverty Line and 250 percent of the poverty line.
Let HealthMarkets Find Good, Affordable Health Insurance for You
In addition to federal and state exchanges, HealthMarkets can help you find affordable health insurance on private marketplaces. We have helped over 2 million customers find plans from over 180 companies nationwide. Local, licensed agents can help determine if you are eligible for tax credits or other assistance programs to help you find a good and affordable fit for you.