Hispanic family realizes they are eligible for a premium subsidy

You may have heard that many people who buy health insurance on the federal exchange receive premium subsidies that reduce the cost of their policies. But who benefits? And how is this tax credit amount determined? It’s all based on the federal poverty level (FPL).

In 2016, almost 85 percent of people who bought an Obamacare health policy received a premium tax credit. Each year, the FPL is issued by Health and Human Services (HHS) to determine eligibility for certain programs, including Obamacare coverage. You’re eligible for a premium reduction if your income falls between 100 percent and 400 percent of the FPL.

Since most people don’t know what the FPL is, this can be a bit confusing. Also, this benchmark is adjusted annually, making it hard to keep up.

So how do you know if you qualify for a premium subsidy on your Obamacare policy? We’ll make it easy.

The chart below gives the qualifying income ranges for 2018-2019 policies for the 48 contiguous U.S. states and the District of Columbia. The income ranges for Alaska and Hawaii can be found on the HHS website.

Do You Qualify for an Obamacare Health Insurance Premium Subsidy?

Household Size Minimum Income –
100% Federal Poverty Level
Maximum Income –
400% Federal Poverty Level
One individual $12,140 $48,560
Family of 2 $16,460 $65,840
Family of 3 $20,780 $83,120
Family of 4 $25,100 $100,400
Family of 5 $29,420 $117,680
Family of 6 $33,740 $134,960
Family of 7 $38,060 $152,240
Family of 8 $42,380 $169,520

For families/households with more than eight people, add $4,320 for each additional person.



https://www.healthcare.gov/glossary/premium-tax-credit/ | https://aspe.hhs.gov/poverty-guidelines | https://www.npr.org/sections/health-shots/2017/10/13/557541856/halt-in-subsidies-for-health-insurers-expected-to-drive-up-costs-for-middle-clas | https://www.healthcare.gov/glossary/federal-poverty-level-FPL/ | https://www.kff.org/health-reform/issue-brief/explaining-health-care-reform-questions-about-health/

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