ACA Health Insurance Subsidies: Help for Lower-Income Individuals

Are you an individual or family with an income that exceeds Medicaid eligibility but still struggling to afford health insurance? You’re not alone. Many people fall into this income gap, making it difficult to secure affordable coverage. Fortunately, the Affordable Care Act (ACA) offers government programs that provide financial assistance to help lower-income individuals obtain health insurance.

ACA Health Insurance Subsidies

The ACA provides premium subsidies, also known as tax credits, to help lower-income individuals and families afford health insurance purchased through the Health Insurance Marketplace (HIM). These subsidies are available to those with incomes between 138% and 400% of the Federal Poverty Level (FPL). The amount of the subsidy you qualify for depends on your income, family size, and the cost of health insurance in your area.

How to Apply for ACA Subsidies

To apply for ACA subsidies, you must enroll in health insurance through the HIM. You can do this online at healthcare.gov or by phone at 1-800-318-2596 (TTY: 1-855-889-4325). When you apply, you will need to provide information about your income, family size, and citizenship status. You will also be asked to choose a health insurance plan from the HIM.

Additional Financial Assistance

In addition to premium subsidies, the ACA also offers other forms of financial assistance to help lower-income individuals afford health insurance. These include:

Cost-sharing subsidies: These subsidies help lower-income individuals pay for out-of-pocket costs, such as deductibles, copayments, and coinsurance.
Deductible reductions: These reductions help lower-income individuals lower their annual deductible, which is the amount they must pay before their insurance coverage begins.

Eligibility Requirements

To be eligible for ACA subsidies, you must:

Be a U.S. citizen or legal resident
Not be incarcerated
Have an income between 138% and 400% of the FPL
Not be eligible for Medicare, Medicaid, or other government health insurance programs

Conclusion

ACA health insurance subsidies are a valuable resource for lower-income individuals and families who need help affording health insurance. If you qualify for subsidies, you can significantly reduce the cost of your coverage and make health insurance more affordable. To learn more about ACA subsidies and how to apply, visit healthcare.gov or call 1-800-318-2596.