How to Qualify for Healthcare Coverage Subsidies Under the Affordable Care Act

The Affordable Care Act (ACA), often known as Obamacare, offers financial assistance, or subsidies, to income-eligible individuals and families to assist them in purchasing affordable health insurance coverage Through the Health Insurance Marketplace, subsidies are available, which is a government website where you can shop for and enroll in health insurance plans.

Income Eligibility for ACA Subsidies

To be eligible for ACA subsidies, your income must fall within a certain range. This range is updated each year and is based on the Federal Poverty Level (FPL). For a household of six in 2024, the income limit is 400% of the FPL, which is about $111,000.

If your income is below this limit, you may be eligible for a subsidy; however, the amount of the subsidy will vary depending on the size of your household and your income relative to the FPL. Generally, households with lower incomes will qualify for larger subsidies.

Why is there a Minimum Income to Qualify for ACA Subsidies?

Some may wonder why there is a minimum income requirement to qualify for ACA subsidies. This requirement is in place because the ACA is designed to provide subsidies to those who need financial assistance to obtain affordable health insurance coverage who don’t qualify for Medicaid.

Individuals and families with incomes below the minimum income level are more likely to qualify for Medicaid, a government program that provides free or low-cost health insurance to low-income individuals and families.

How to Apply for ACA Subsidies

If you think you may be eligible for ACA subsidies, you can apply through the Health Insurance Marketplace. You can apply online at Healthcare.gov or by calling 1-800-318-2596. When you apply, you will need to provide information about your household income, family size, and other factors, which will be used to calculate your eligibility for subsidies.

If you are approved for a subsidy, you will receive a tax credit that will reduce the cost of your monthly health insurance premiums. The amount of the tax credit will vary depending on your income and the size of your household.

Conclusion

ACA subsidies can provide significant financial assistance to income-eligible individuals and families who need help affording health insurance coverage. If you are unsure whether you qualify for subsidies, you can apply through the Health Insurance Marketplace to find out.