How to Get a Subsidy to Pay for Health Insurance?
Subsidized health insurance meaning: March 31 is the deadline for enrolling under Affordable Care Act or Obamacare. Americans who are not covered with health insurance are eligible for a subsidy from government to take health insurance. Many Americans aren’t aware about this financial assistant or subsidy provided. Here are some points that will help in understand premium assistance tax credit. Here we will discuss on subsidized health insurance policy 2017 and how to check eligibility for a subsidy online.
What is a subsidy or premium assistance tax credit?
It is one kind of subsidy offered by government to pay for purchasing health insurance from state health insurance market. The subsidy is either provided by cash benefit or takes as a tax credit while paying taxes in next year.
- Who is eligible for a subsidy?
When people buy health insurance from state health insurance market or through online federal website, they are eligible for subsidy for such insurance. The website www.helathcare.gov contains specified information about it. Medicaid provides to those who are not eligible for insurance coverage through employer and are under age of 65, middle income individuals. “The lower the income, the larger tax credit” is a simple rule for getting subsidy.
- What are the income requirements to qualify?
Federal poverty guidelines and household size decides the income requirement. According to new guidelines, a person is eligible for subsidy if his household income is less than 400 percent of the federal poverty level i.e. $45,960 for an individual and up to $94,200 for a family of four.
- How much money will I receive?
Generally, the amount of subsidy is the difference between expected contribution and the cost of the health insurance plan. For example, if income of a family of four is $47000 in a year, then they have to contribute $2961 (6.3% of $47000) on the plan. Now assume that his health insurance policy is $9200 then $6239 will be the amount of subsidy i.e. $9200 less $2961.
- How do I get the subsidy?
The government directly deposits the premium tax credit in health insurance company, if a person choose the option to get subsidy in advance. If he does not choose the said option, he will receive it as a tax credit in the next year.
- What happens if I don’t buy insurance?
A penalty of $95 per adult and $47.50 per child or 1 percent of annual household income (whichever is greater) is to be payable if people don’t purchase health insurance till 31st March. There are also some exemptions from paying penalties. The list is provided under www.healthcare.gov/exemptions.
More Related Queries:
- health care subsidy calculator/Am I eligible
- health insurance subsidy chart