Can You Lose Your ACA Insurance if Your Income Drops?
If you’re like many Americans, you may be wondering whether you can lose your ACA health insurance if your income drops. The answer is: it depends.
Under the Affordable Care Act (ACA), you are eligible for premium tax credits to help lower the cost of your health insurance if your income is below certain limits.
Specifically, for 2023, you are eligible for premium tax credits if your income is between 138% and 400% of the federal poverty level (FPL).
For a single person, this means that your income must be between $18,754 and $53,000. For a family of four, your income must be between $30,750 and $89,250.
If your income drops below 138% of the FPL, you will no longer be eligible for premium tax credits.
HOWEVER, you will not lose your health insurance.
You will simply have to pay the full cost of your premiums.
If you are concerned about being able to afford your health insurance if your income drops, you can take steps to reduce your costs.
One option is to choose a plan with a lower premium. Another option is to increase your deductible. You can also shop around for a plan that offers discounts for healthy behaviors, such as not smoking or getting regular exercise.
If you are struggling to afford your health insurance, you may also be eligible for Medicaid or CHIP.
These programs provide health insurance to low-income individuals and families.
To learn more about Medicaid and CHIP, you can visit the website of your state’s Medicaid agency.
Losing your job or having a reduction in income while having an ACA plan can be stressful. However, it’s important to know what options are available if your circumstances change.
Our licensed agents are always here to help if you have any questions.
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