What is the maximum income for getting Obamcare premium assistance?
Did you know that 56% of Americans are estimated to have access to health insurance plans for less than $100 per month under Obamacare? How is this possible?
Many of these Americans qualify for coverage through Medicaid or Children’s Health Insurance Program (CHIP), and with the new option for states to expand Medicaid coverage, many more could tap into the monthly savings. For those that do not qualify for Medicaid or CHIP, there is another cost-savings option that could go a long way in reducing the cost of monthly premiums.
Affordable health insurance premiums are due, in part, to premium assistance (also known as the Advance Premium Tax Credit (APTC)). The APTC is a new tax credit under Obamacare that will provide a series of advance payments from the federal government directly to your health plan provider to help lower the cost of your monthly premium. Instead of waiting for your tax return, you receive these payments monthly for immediate use. You must qualify for this tax credit annually and once you’ve qualified you can choose—up to a maximum amount—how much of the advance the government should apply to your monthly premium.
At the end of the year, your actual APTC will be assessed based on your household size, your income, and any life changes that affected either of these two variables. If the total amount of advance payments you’ve received is less than your tax credit, you will receive the difference in your federal tax return. Likewise, if your advance total is more than your qualifying tax credit, you must repay the excess in your tax return.
Premium assistance is available to households that make up to 400% of the Federal Poverty Level, which changes yearly. You can estimate the maximum income level for your household through the 2013 Poverty Guidelines. Otherwise, take a look at these predetermined ranges to see if you might qualify to save money on your monthly premiums:
- $11,490 to $45,960 for individuals
- $15,510 to $62,040 for a family of 2
- $19,530 to $78,120 for a family of 3
- $23,550 to $94,200 for a family of 4
- $27,570 to $110,280 for a family of 5
- $31,590 to $126,360 for a family of 6
- $35,610 to $142,440 for a family of 7
- $39,630 to $158,520 for a family of 8
We must reiterate that if your income falls below these ranges, you may qualify for Medicaid and depending on whether your state is expanding Medicaid in 2014, you could have access to even more affordable health insurance. Be sure to take some time to find out if you qualify for any of these subsidies.
How Much photo courtesy of Shutterstock.