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 thatcosts more than 9.5% of your incomeor 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.
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In an effort to make insurance more affordable for Americans, the Affordable Care Act (ACA) includes insurance subsidies to help individuals pay their insurance costs. A subsidy is a benefit given by the government (usually in the form of a tax reduction or cash payment) to remove certain financial burdens. Federal subsidies for health insurance help bridge the gap between what you can payfor insurance and what health insurance actually costs.
Health insurance rates have been a topic of concern for at least the last ten years. The latest surveys show healthcare costs growing for Americans, and these numbers are expected to continue to grow. Costs for a typical family have more than doubled over the past decade. Some have compared the annual cost of healthcare for most families to the cost of a new car or a year’s worth of groceries. While many speculate as to who or what is responsible for these increases, others just want to know: what do I do when health insurance rates skyrocket?
Affordable health insurance plans are usually not hard to find when looking solely at premiums. You may see plans with premiums that look well within your budget. However, there are 3 factors that need to be considered to really understand how affordable a plan is.