With a tip of the hat to Families USA, I want to share this cheat sheet with those who read this blog. It should help you easily figure out if you are going to get help from the government to pay your mandated health insurance premiums.
Obamacare requires the Department of the Treasury to help low-income Americans pay for their health insurance.
Eligibility for the tax-credits depend on HOUSEHOLD incomes and not individual incomes. In other words, if you file jointly with your spouse, both incomes will be considered.
If you, and your spouse, earn less than what is shown in the chart above, you will most likely qualify for a tax-credit. If you do, and want to claim your subsidy, you must purchase your government approved health insurance through your state’s health insurance exchange.
Just keep in mind that the amount of subsidy, for which you are eligible, will depend on your HOUSEHOLD’S income. The amount of the subsidies are weighted in favor of lower-income Americans. Household’s with incomes of only 101% of Federal Poverty Level (FPL) can receive as much as 97% of the cost of the second least expensive “Silver” plan that is offered in their state’s health insurance exchange.
American’s with household income of 400% of FPL will only receive help valued at 13% of the second least expensive “Silver” plan that is offered in their state’s health insurance exchange.
If your HOUSEHOLD income exceeds the figures on this chart, you are not eligible for any federal subsidies. You can choose to buy your government approved health insurance either through your state’s exchange or directly from an insurance company.