Health Insurance Subsidy: What is it and Do I Qualify?

When you get health insurance, you pay a monthly premium to maintain your coverage. A health insurance subsidy lowers your premium, and in some cases, also reduces additional costs, such as your copays. The subsidy comes from the state or federal government, and you do not have to pay any of the money back. You must meet certain requirements to qualify for a healthcare subsidy. Get the details to see if you can get a healthcare subsidy in 2019.

How to Qualify for Subsidies

The state and federal government use a formula to determine if you qualify for health insurance subsidies. The government analyzes your:

  • Income
  • Family Size
  • Filing Status
  • Citizenship Status
  • Location

The state and federal governments have different requirements. Take a closer look at both to see if you can get a health insurance subsidy.

ACA Subsidies – Obamacare Subsidies in 2019

Obamacare subsidies are granted by the federal government. The government offers two subsidies. First, there is the Advanced Premium Tax Credit, which reduces the cost of your premium. Second, there is the Cost Sharing Reduction subsidy. This reduces your deductible, copays, and coinsurance. The amount you get depends on your family size and income level.

Minimum Income for Obamacare Subsidies

You can qualify for the Advanced Premium Tax Credit if your income is up to 400 percent of the federal poverty level. If you’re applying as an individual, you can get a subsidy if you make $49,960 or less. If you’re a family of four, your income needs to be $103,000 or less to get the credit. The lower your income, the higher the subsidy will be.

You can also qualify for a Cost Sharing Reduction subsidy if your income is up to 250 percent of the federal poverty level. That is $31,225 for individuals and $64,375 for a family of four. If you qualify for a Cost Sharing Reduction, you also qualify for the Advanced Premium Tax Credit.

Who Qualifies for a Subsidy in California?

California has expanded its subsidy program to offer discounts to more residents. If you live in California, you can get a health insurance subsidy if you make up to 600 percent of the federal poverty level. That means if a family of four makes around $150,000, it will qualify. That is almost $50,000 more than offered by the federal government.

Individual Mandate Tax Penalty for California Residents

It’s critical to get health insurance if you live in California. If you fail to do so, you will have to pay the individual mandate tax penalty. The penalty is 2.5 percent of your annual income or $695 for each adult and $347.50 for each child in the household. You will continue to pay this penalty until you get health insurance. Don’t make the mistake of going without insurance.

How to Get a Healthcare Subsidy in 2019

You can get a healthcare subsidy by applying for health insurance on California’s state healthcare exchange. You must get a Silver-tier plan to get a subsidy. If you qualify and get a Silver plan, the subsidy will be applied automatically.

Open Enrollment Deadline

To qualify for a subsidy, you must get health insurance during open enrollment. Open enrollment in California ends on Jan. 15, 2020. Make sure you get your plan by Jan. 15 so you can benefit from the subsidy.

Get a Health Insurance Quote

California and Affordable Care Act subsidies can be confusing. You don’t know how much you’ll get, and you aren’t even sure what plan you should purchase. Cost-U-Less makes the process easy. Call us at (800) 390-4071 to find out if you qualify for a health insurance subsidy and get a free quote today.