An insurance subsidy can help make the cost of health care more affordable to your family. Even if you don’t use your health insurance, you could end up spending thousands between premiums and out-of-pocket costs. But with an insurance subsidy, you can save money and still get the same coverage you signed up for.
Which Insurance Subsidy Do You Qualify For?
Not everyone who acquires healthcare coverage is eligible for a subsidy. You have to meet certain criteria for individuals or families that determine if you’re in need of a cost-sharing or credit. There are different types of subsidies, offering assistance to people in a unique financial situations.
The Two Types of Subsidies
Premium Tax Credits
This tax credit can help to reduce the cost of monthly premiums by making direct payments to your insurance provider, or as a tax credit you can file in your tax return. To be eligible for this subsidy, you must make an annual income of 100%-400% of the Federal Poverty Line.
This subsidy helps to reduce the amount you have to pay out of pocket when you receive medical care. To be eligible for this reduction, you must make an annual income of 100%-250% of the Federal Poverty Line and currently be enrolled in a Silver-tiered plan. You may also qualify for this insurance subsidy if you’re a member of a federally recognized tribe or an Alaska Native Claims Settlement Act (ANCSA) Corporation shareholder.
To know if you qualify for any federal insurance subsidy program, you can use the health insurance calculator provided by the Henry J. Kaiser Family Foundation.
Or contact an insurance professional at HealthMarkets Insurance Agency to help you navigate the Marketplace and find the insurance subsidy that can save you money on your premiums and out-of-pocket costs.