The Affordable Care Act (ACA) is the health care law signed into law by President Obama in 2010. The ACA significantly changed the way health insurance is regulated in the United States. While it has been revised since its introduction, many of its critical components remain in place to offer health insurance to more Americans.

One of the most important changes made by the ACA was the creation of the health insurance marketplaces. These marketplaces are online exchanges where individuals and small businesses can shop for health insurance plans. When you apply for health insurance through the marketplace, you will be asked to provide information about your income. This information is used to determine your eligibility for premium tax credits.

Premium tax credits are subsidies that help lower the cost of health insurance. The amount of premium tax credit you receive is based on your income and the number of people in your household. If you underestimate your income when you apply for health insurance, you may receive more premium tax credits than you are eligible for. This could result in you having to pay back the excess premium tax credits when you file your taxes.

What should you do if you underestimate your income when you apply for health insurance?

If you realize that you have underestimated your income when you apply for health insurance, you should contact the health insurance marketplace as soon as possible. You can update your income information by logging into your account on the marketplace website. You can also contact the marketplace by phone or mail.

Once you have updated your income information, the marketplace will recalculate your eligibility for premium tax credits. If you are no longer eligible for premium tax credits, you will have to pay the full cost of your health insurance premiums. You may also have to pay back any excess premium tax credits that you have already received.

It is important to provide accurate information about your income when you apply for health insurance. If you underestimate your income, you could end up having to pay back excess premium tax credits. If you overestimate your income, you could end up paying more for health insurance than you need to.

Conclusion
If you own a business, you must ensure that you correctly estimate your yearly income when you apply for health insurance through the marketplace. If you need assistance with this process, don’t hesitate to reach out to a licensed insurance agent for guidance.