The government may provide financial assistance - called subsidies - to help some people pay for health coverage or care if they can't afford it themselves. This is usually determined by a person's income level and family size. You will be able to find out if you qualify for financial assistance when the Health Insurance Marketplaces launch in October.
Below are some general income guidelines that might be used by the government to see if you qualify.* The lower your income within these ranges, the more you'll save. (The amounts below are based on 2013 numbers and are likely to be slightly higher in 2014.)
* For reference only. Subject to change.
Premium Tax Credit is one type of subsidy available to eligible consumers who purchase a health plan through the Marketplace. Payment amounts are based on the consumer's income, with an individual expected to pay between 2 - 9.5% of their income toward their premiums. The tax credit will make up the difference between that percentage and the actual cost of the premium. It can be paid in advance on a monthly basis directly to the health plan, decreasing the amount of the individual's monthly premium. Applicants must elect to receive the premium tax credits in advance.
Premium Tax Credit will be available to individuals with income between 101 and 400% of the Federal Poverty Level. For the year 2013, a single person earning $11,490 - $45,960.
Cost-sharing reductions is one type of subsidy available to eligible consumers enrolling through the Marketplace. Cost sharing reductions mean that plans pay a greater amount of the covered costs, taking the burden off of the consumer. The cost sharing subsidies are paid directly to the plan.
Cost-sharing reductions will be available to those with income between 101 and 250% of the Federal Poverty Level. For the year 2013, a single person earning $11,490 - $28,725.