- Written by O. M. Editor O. M. Editor
The health insurance subsidies granted in Obamacare Marketplace via instant premium tax credits is a major benefit to making health insurance affordable and accessible to many Americans. The Affordable Care Act enhanced health insurance comprehensive benefits while providing a much higher level of consumer protections and security. This of course will add to the over all costs of health insurance premiums making the tax credit subsidies vital to affordability.
The Obamacare subsidies are calculated according to income and family size. Medicaid will be available to those living under 100% of the federal poverty level if your state participates in the PPACA Medicaid expansion. While those with incomes between 133% to 400% of poverty will have access to tax credit subsidies. The subsidy scale is a progressive schedule, so that the higher the financial need for affordability tax credits, the higher the subsidy.
To help understand where you stand in all of this, we have provided some useful links and references (below) to help clear the air!
The first question is to see whether you qualify for tax credit subsidies or Medicaid expansion (only in states accepting Medicaid expansion) you need to find out how your income measures as a percentile to the 2013 Federal Poverty Guidelines (see chart).
If you make over 400% of the US poverty level in income you do not qualify for any subsidy assistance. Of course you can still shop in the competative Obamacare Marketplace and also in the private marketplace to find the best deal for you.
If your income level is between 133% to 400% of the federal poverty level then you can explore the following health insurance subsidy calculators by clicking on the links. This should be able to provide you a good idea of your future health insurance tax credits in the Obamacare Marketplace.
Eligibility for premium tax credit subsidies includes also being a US citizen or legal immigrant who meets the income limits and purchases health insurance through their state's Obamacare Exchange or Marketplace.
Health Insurance Subsidy Reference Materials
The Federal government provides a Quick Check Chart to see about qualifications for income based tax credit subsides available in the Obamacare Marketplace.
Obamacare Coverage Via Medicaid Expansion
Health care access for those who can least afford it, individuals and families with income less than 133% of the federal poverty level will be steered to the Medicaid expansion afforded in the Obamacare Marketplace. Unfortunately, the Supreme Court did not uphold the law as far as the Medicaid expansion was written. The court ruled that the federal government could not require individual states to expand Medicaid in accordance with the Affordable Care Act, but rather, made it an option for individual states. The federal government picks up 100% of the cost for this expansion for the first few years of Obamacare and then gradually reduces their support to a low of 90% of the total cost. The worst-case scenario down the road for states is they would have to pick up 10% of the total Medicaid expansion tab for their state residents.
Now you may be asking what state would refuse such a great deal for their poorer residents to have healthcare access. But believe it or not there are many red states whose politicians are more interested in being political obstructionist rather than doing what most would consider to be a no-brainer. They are putting people's health and well-being second to their political ideals and aspirations. One way to fix that is in the voting booth, or maybe hospitals and other medical providers will pressure these politicians to do the right thing so that they can offer comprehensive healthcare to these needy folks versus the status quo of uncompensated emergency-room care. Emergency-room style healthcare is completely inefficient, wasteful and expensive. The bill is then passed on to the rest of us, inflating our healthcare cost. So, if you're interesting in knowing what states are doing what, the map below should prove informational.
Small Employers Tax Credits And Marketplace
Small business employers, begining 2014 will have access to the expanded Small Business Healthcare Tax Credit. This tax credit covers as much as 50% of employers premium cost with eligible low to moderate wage employees. The Small Business Health Options Program (SHOP) Marketplace will have exchanges to access these tax credits along with competitive small group health plans.
Learn more about how the Small Business Health Options Program (SHOP) will simplify the process of finding health insurance for your small business, give you access to tax benefits, and offer new consumer protections.
Obamacare Subsidies UPDATES:
June 18, 2014
Take a look at ASPR Research Brief on the Obamacare Subsidies effect of health insurance premiums for the first Open enrollment period. Millions of Americans found affordable health insurance thanks to the Obamacare subsidies!
November 12, 2013
New studies show the great potential for Obamacare subsidies in helping provide affordable health insurance to millions of Americans. A Kaiser Family Foundation study shows over 17 million Americans are eligible for health insurance subsidies in the Obamacare Marketplace in 2014. A McKinsey Center for U.S. Health System Reform study finds 6 to 7 million Americans eligible for "zero-net premium products" subsidies that cover the entire bronze insurance plan premiums and about 1 million for silver plans. These two studies underline the affordable health insurance inherent in the Affordable Care Act (PPACA) for millions of Americans.