The Affordable Care Act, also known as Obamacare or the ACA, provides millions of individuals and families across America with public health insurance options if they do not have employer-sponsored coverage or simply want to expand their available options. For qualifying individuals, subsidies may be available to make those options even more affordable.
Not just anyone is eligible to receive these subsidies. Here’s an overview of how subsidies for Obamacare insurance work for Tampa, FL residents.
Obamacare insurance subsidy eligibility
Obamacare subsidies operate on a sliding scale. They’re designed to provide you with some financial relief and limit the amount of money you pay in your premiums each month, based on a percentage of your yearly income.
If you earn 400 percent or less of the federal poverty level, chances are you will be eligible for subsidies. If your income is below the poverty level, you might not qualify for those subsidies, but you will likely qualify for Medicaid, a national healthcare program designed for qualifying low-income people.
The exact criteria for Obamacare subsidies are as follows:
- You currently reside in the United States
- You are a legal American citizen or legal resident
- You are not currently serving prison time
- Your income falls below 400 percent of the federal poverty level
The poverty level for an individual in 2020 was $12,760, which means you qualified for the Obamacare subsidy if you were making less than $51,040.
The federal poverty level also varies based on the number of people in your household. For a family of four, the poverty level in 2020 was $26,200, meaning you would qualify for the federal subsidy if you were making less than $104,800 in your household. For a family of six, the poverty level was $35,160, meaning you would have been eligible in 2020 if making $140,640 or less in your household.
Keep in mind that eligibility for subsidies is based on the income in the year in which you’ll be covered by the health plan, not based on the income you reported in the previous year’s tax return. You will need to estimate your income for the coming year when you apply for a subsidy, and if you end up earning more than you anticipated, you may be required to pay back some of that subsidy money. Meanwhile, if you earn less than expected, you may be due additional financial assistance that can apply to your tax return for the year.
You can apply for an ACA subsidy through the health insurance marketplace in your state, or with the assistance of a licensed agent or private online marketplace that follows the guidelines set by the government.
Carefully consider how much your current plan costs you, and whether it might be advantageous for you to at least consider looking into a government health plan. Qualifying for a subsidy might make it worth your while.
For more information about qualifying for Obamacare subsidies in Tampa, FL, contact Star Insurance Quotes with any questions. We look forward to helping you find an affordable insurance policy.