How ACA Coverage Changes With Increased Income

When your income increases, it can affect your eligibility for subsidies and the amount of financial assistance you receive for your ACA health insurance plan. Here’s how it works:

Income Limits for ACA Subsidies

The ACA provides subsidies to help low- and moderate-income individuals and families afford health insurance. To qualify for these subsidies, your income must fall within certain limits. For 2023, the income limits are:

Individual: $58,760
Family of four: $156,310

Subsidy Calculator

If your income is within these limits, you can use the ACA Subsidy Calculator to estimate the amount of financial assistance you may qualify for. The calculator will ask you for information about your income, family size, and state of residence.

Changes to Coverage

If your income goes up, you may lose eligibility for subsidies or qualify for a lower amount of financial assistance. This can result in a higher monthly premium for your ACA health insurance plan.

What to Do If You Experience an Income Increase

If your income increases, it’s important to update your ACA application as soon as possible. You can do this by logging into your HealthCare.gov account or by calling the Marketplace Call Center at 1-800-318-2596.

Updating your information will ensure that you are receiving the correct amount of financial assistance and that you are not paying more than you should for your ACA health insurance plan.

Other Considerations

In addition to subsidies, there are other factors that can affect your ACA coverage when your income increases. These factors include:

Deductibles: The deductible is the amount you pay out-of-pocket for covered medical expenses before your insurance begins to cover costs. A higher income may result in a higher deductible.
Copayments: Copayments are fixed amounts you pay for specific medical services, such as doctor’s visits or prescription drugs. A higher income may result in higher copayments.
Out-of-pocket maximums: The out-of-pocket maximum is the most you will pay for covered medical expenses in a year. A higher income may result in a higher out-of-pocket maximum.

It’s important to carefully consider these factors when you are choosing an ACA health insurance plan. If you have any questions, be sure to speak with a licensed agent who can help you find the right plan for your needs.