Could you reduce your monthly health insurance premium or what you pay out of pocket for healthcare expenses covered by your Obamacare plan? Perhaps.
The Affordable Care Act’s premium tax credits and cost-sharing reductions can help many Americans lower their health insurance premiums and out-of-pocket costs. However, to take advantage of these subsidies, you must both:
NOTE: Premium tax credits may be applied to plans of all metal levels; however, cost-sharing reductions are only available with a silver plan.
Premium tax credits and cost-sharing reductions have different income limits based on the federal poverty level (i.e., poverty guidelines). They are as follows:
Your health insurance subsidy for the current year is based on the previous year’s federal poverty guidelines. That means 2017 subsidies are based on the 2016 federal poverty guidelines, which are available through the Department of Health & Human Services.
The 2016 poverty guidelines show that $12,071 is the poverty threshold for a one-person household. Based on these numbers alone, 100 to 400 percent of the federal poverty level for a single person would be $12,071 to $48,284. However, this person may or may not be eligible for a premium tax credit.
Please be aware that your subsidy eligibility may be impacted by the state you live in due to Medicaid expansion decisions and other savings programs available there. Furthermore, state benchmark plans (i.e., the second lowest cost silver plan) can also impact subsidy amounts and eligibility. You can estimate your premium tax credit using online calculator tools such as the one available through healthedeals.com.
To verify your final eligibility, apply for health insurance coverage and subsidies through your state-based or federally facilitated Obamacare exchange—either on your own or with the help of a producer. If you have questions about the subsidies available to you or need assistance shopping for health insurance, contact a producer using the number located at the top of your screen. Use Agent Finder to find local assistance.
 HealthCare.gov. “Will You Save on Health Coverage? Do a Quick Check.” https://www.healthcare.gov/lower-costs/qualifying-for-lower-costs/
 HealthCare.gov. “Second Lowest Cost Silver Plan.” https://www.healthcare.gov/glossary/second-lowest-cost-silver-plan-slcsp/
This document is for general informational purposes only. While we have attempted to provide current and accurate information, this information is provided "as is" and we make no representations or warranties regarding its accuracy or completeness. The information provided should not be construed as legal or tax advice or as a recommendation of any kind. External users should seek professional advice from their own attorneys and tax and benefit plan advisers with respect to their individual circumstances and needs.
About The IHC Group
Independence Holding Company (NYSE: IHC) is a holding company that is principally engaged in underwriting, administering and/or distributing group and individual disability, specialty and supplemental health, pet, and life insurance through its subsidiaries since 1980. The IHC Group owns three insurance companies (Standard Security Life Insurance Company of New York, Madison National Life Insurance Company, Inc. and Independence American Insurance Company) and IHC Specialty Benefits, Inc., which is a technology-driven insurance sales and marketing company that creates value for insurance producers, carriers and consumers (both individuals and small businesses) through a suite of proprietary tools and products (including ACA plans and small group medical stop-loss). All products are placed with highly rated carriers.
IHC Specialty Benefits, Inc.
IHC Specialty Benefits, Inc., doing business as Health eDeals Insurance Solutions is a full-service marketing and distribution company that focuses on small employer, individual and consumer products. Health eDeals markets products via general agents online, telebrokerage, advisor centers, private label and directly to consumers. For more information about Health eDeals visit http://www.HealtheDeals.com.