ACA: Understanding the Poverty Exemption
The Affordable Care Act (ACA) provides financial assistance to low-income individuals and families to help them afford health insurance. One way this is done is through the poverty exemption, which allows people who earn below a certain income level to qualify for a premium tax credit.
How the Poverty Exemption Works
To qualify for the poverty exemption, your income must be below the federal poverty level (FPL). The FPL is updated each year, and the current income limits for 2024 are as follows:
For individuals: $13,590
For families of two: $20,340
For families of three: $27,090
For families of four: $33,840
If your income is below these limits, you may qualify for a premium tax credit. This credit will help you pay for your monthly health insurance premiums, making it more affordable to get the coverage you need.
How to Apply for the Poverty Exemption
To apply for the poverty exemption, you will need to complete the Form 8962, Premium Tax Credit. You can get this form from the IRS website or from your health insurance provider. Once you have completed the form, you will need to mail it to the IRS.
What Happens If I Don’t Qualify for the Poverty Exemption?
If your income is above the FPL, you will not qualify for the poverty exemption. However, you may still be able to get help paying for health insurance through other programs, such as Medicaid or the Children’s Health Insurance Program (CHIP).
You can learn more about these programs and how to apply for them by visiting the HealthCare.gov website or by calling the Marketplace Call Center at 1-800-318-2596.
Question? or Need a Free Quote?
Contact Us
Reach out to us for free expert insurance advice and solutions. We will help you solve ACA (Obamacare) related questions and problems. Will contact you within 24 hours of receiving your message.