Tax Credits on the Marketplace
Some individuals and families shopping on the Health Insurance Marketplace will receive help to pay their health insurance premiums.
Your eligibility will depend upon two main criteria:
1. How much money do you make?
Individuals and families with household incomes at or below 400% of the federal poverty level (FPL) may qualify for a tax credit. That's about $46,000 a year for one person and about $94,000 for a family of four in 2013.
2. Do you have affordable health coverage at work?
If you are offered affordable single coverage at work, you won't be eligible for tax credits, no matter what your income level. The government considers affordable coverage to be an employee's portion of single (employee only) coverage that accounts for no more than 9.5% of the employee's annual income.
Tax credits will be issued to eligible individuals and families on a sliding scale and can be paid directly to your selected health insurance company.
Here are some examples:
Income: $30,000 (261% of FPL)
Estimated Premium: $4,800
Government Subsidy: -$2,525
Revised Cost of Coverage: $2,275
Family of Two
Age: Enrollee 30; Spouse: 31
Combined income: $80,000 (516% of FPL and not eligible)
Estimated premium: $6,180
Government tax credit: None
Revised coverage cost: $6,180