The federal government provides subsidies to eligible individuals and families who need assistance paying insurance deductibles. Almost anyone can sign up for an insurance policy on the federal Health Insurance Marketplace. The best part? It takes just minutes to apply and find out if you qualify for a subsidy.
Keep in mind that not everyone is eligible for a subsidy to reduce the cost of the monthly premium. For insurance, you are not eligible for a subsidy if you make too much money for one. The government assumes that you can afford health insurance premiums if your household earns 400 percent more than the federal poverty level.
Below are a few other situations in which you may not be eligible for subsidies.
· If you do not earn enough. Your household may qualify for government health insurance programs instead of a subsidy if your household’s income is at or less than the federal poverty level.
· If you have affordable health insurance through your employer. The federal government considers insurance coverage as affordable when it costs 9.83 percent or less of an employee’s household income.
If 10 percent of your household income goes to health premiums, you do not have affordable coverage and might qualify for a government subsidy.
· If you are eligible for premium-free Medicare. You can sign up for Medicare coverage at 65 years of age. You will qualify for premium-free Medicare Part A if you have an adequate work history. If you are not eligible for Medicare Part A for free, you might qualify for a subsidy.
The amount of your subsidy will depend on your income, household size, and the plan you select. Your location can also play a factor since areas like Hawaii and Alaska have higher health care costs. However, your premium will not exceed 9.83 percent of your household income.
If you are not eligible for a subsidy because of your low income, you might qualify for even cheaper coverage through a government program.