Can You Count On Federal Health Insurance Subsidies?


2016 Health Insurance Subsidies

Obamacare requires the government to pay “subsidies” to help citizens pay for the new Essential Benefit Plans that the government mandates Americans to buy or pay a “Shared Responsiblity Payment” (previously referred to as “Penalty” by congress and “Tax” by the U.S. Supreme Court.)

On January 30, 2013 the Obama Administration clarified who will be exempt from the Individual Mandate in their Proposed Rules.  In my weekly email for Feb. 19, 2013 I list those who will be exempt.  The rest of us will need to decide if we are going which of the Essential Benefit plans we want to buy or pay the “Shared Responsibility Payment.”

The penalty payments are phased in over 3 years.  They will not reach their full impact until 2016.  The chart above illustrates what subsidy amount you can expect in 2016.

There is still some controversy over what the subsidies will be based on.  However, everything that I have seen tells me that the subsidies will be based on the premium for the second least expensive “silver” plan.

I am hesitant to spread anymore rumors until the Exchanges have been completed and HHS has provided full training.  Things can change between now and then.

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