In 2014, when the Health Insurance Marketplace goes live, there will be a possibility of individuals and families qualifying for tax credits and subsidies. The tax credits and subsidies will be based on your family size, so whether you are an individual person or a family of four, as well as annual income.

The really nice feature with the subsidies and tax credits is that they will help reduce your insurance costs, whether it be for things like your monthly payments to the insurance company, your monthly premium, or even just your general out-of-pocket expenses with the plan. It could be a doctor office visit fees or anything of that nature that would help reduce those copays and out-of-pocket expenditures you’d be responsible for.

And also, when going into the Health Insurance Marketplace, you may think that a bronze policy is going to be the best policy for you because that’s the most affordable. But a health insurance subsidy or tax credit might actually allow you to afford more of a silver or gold policy which might actually be more suitable to your usage.

The only way to qualify for a subsidy is to go through the Health Insurance Marketplace. We do have an estimator available on our website, but that will just be an estimate. So of course going through the Health Insurance Marketplace is going to be the best avenue to get the accurate amount. 

The information in this document is based on preliminary review of the national health care reform legislation and is not intended to impart legal advice. The federal government continues to issue guidance on how the provisions of national health reform should be interpreted and applied. The impact of these reforms on individual situations may vary. This overview is intended as an educational tool only and does not replace a more rigorous review of the law’s applicability to individual circumstances and attendant legal counsel and should not be relied upon as legal or compliance advice. As required by US Treasury Regulations, we also inform you that any tax information contained in this communication is not intended to be used and cannot be used by any taxpayer to avoid penalties under the Internal Revenue Code.