Am I Eligible for a Health Insurance Subsidy?
With few exceptions, the Affordable Care Act requires everyone to have health insurance. If you're insured through your employer, or eligible for programs like Medicare or Medicaid, you're covered.
If not, you'll need to buy your own health insurance. Otherwise you'll have to pay a penalty.
Do you already pay for your own insurance? Are you shopping for the first time? Either way, the good news is you may be able to get help paying for individual health insurance. This help is called a subsidy.
A subsidy is financial assistance that helps you pay for something. It's not a loan; you don't pay it back. There are two kinds of subsidies available from the federal government for individual health insurance plans.
When you buy your health plan, applying for a subsidy will be part of the process.
It depends on:
The main factor is your income. You can qualify for a subsidy if you make up to four times the Federal Poverty Level. That's about $47,000 for an individual and $97,000 for a family of four. If you're an individual who makes about $29,000 or less, or a family of four that makes about $60,000 or less, you may qualify for both subsidies.
If you get a subsidy, you'll have to report it when you send in your taxes. When it's time to file your taxes, you'll get a 1095 form with all the necessary information.
When you're shopping for plans, you can see if you qualify for lower costs.