ACA Health Insurance: How to Qualify for Subsidies

“I’ve recently moved to an area with limited housing options, and we’re thinking about what to do next,” begins a user facing a common dilemma: staying versus moving. In this case, the user has two young children and plans to stay in the area for the next 18 years or possibly forever. They are a few years from Financial Independence (FI) and believe that owning a house without a mortgage to lower taxes and qualify for ACA subsidies would be very beneficial.

What is the ACA?

The ACA stands for the Affordable Care Act. It’s a comprehensive health care reform law enacted in 2010 that made significant changes to the way health insurance is regulated in the United States. One of the most significant changes brought about by the ACA is the creation of health insurance exchanges. These online marketplaces allow individuals and families to compare and purchase health insurance plans from private insurers.

ACA Subsidies

The ACA also provides financial assistance to help people afford health insurance. These subsidies are available to people who meet certain income and household size requirements. The amount of the subsidy you qualify for is based on your income and the number of people in your household.

How to Qualify for ACA Subsidies

To qualify for ACA subsidies, you must:

Be a U.S. citizen or legal resident
Not be incarcerated
Not be eligible for other health insurance coverage, such as Medicare or Medicaid
Have a household income that is below a certain level. The income limits for ACA subsidies vary depending on the state you live in.

Benefits of ACA Subsidies

ACA subsidies can help you save money on health insurance. The amount of the subsidy you qualify for will depend on your income and the number of people in your household. However, the average subsidy for a family of four is over \$5,000 per year.

How to Apply for ACA Subsidies

You can apply for ACA subsidies when you enroll in a Marketplace health insurance plan. The Marketplace will calculate the amount of your subsidy based on your income and the number of people in your household.

Conclusion

ACA subsidies can help you save money on health insurance. If you meet the eligibility requirements, you should apply for subsidies when you enroll in a Marketplace health insurance plan.