Pennsylvania Medical Insurance

It 's more than what you pay for.

Are you eligible for a health insurance credit?

To be eligible for the credit, your “household income” must be between 133% and 400% of the federal poverty level. For example, in 2015, 400% of the federal poverty level would $46,680 for a family of one, or $110,280 for a family of five.

Did you know that 87% of people who selected a marketplace health insurance plan got financial assistance? 1 in 6 Americans were able to get a health insurance marketplace plan for $100 or less. How can you help reduce your families’ health insurance costs?
You and your family may be eligible for a healthcare subsidy (cost assistance) that will lower the amount you spend on your monthly premium (via advanced premium tax credits) or reduce your out-of-pocket costs for things like copays, coinsurance, deductibles, and out-of-pocket maximums (cost sharing reduction). The Affordable Care Act (ACA, sometimes referred to as Obamacare) creates a new tax credit for certain taxpayers who buy health insurance via one of the new insurance exchanges. The goal of the credit is to subsidize the cost of health insurance for people who might not otherwise be able to afford it.
The details for who is eligible are listed below. We are happy to help you determine if you qualify for a healthcare subsidy. Just give us a call (215-240-1263), there is no cost for this assistance and we can help you determine if you are part of the 87% of people eligible for financial assistance with your healthcare insurance

“Household income” is defined in the IRS Codes as your modified adjusted gross income (MAGI) plus the MAGI of anybody else included in your household (i.e., your spouse and dependents). MAGI, is confusing to many people. For the purpose of calculating the ACA subsidy credit, MAGI is calculated as:
• Adjusted gross income (that is, the bottom line of the first page of your Form 1040), plus
• Any foreign earned income that was excluded from AGI, plus
• Any tax-exempt interest, plus
• Any Social Security benefits that were excluded from AGI.

In addition to the income requirement, you must meet several other requirements in order to qualify for the health insurance subsidy credit:
• You must have purchased your insurance (or insurance for your spouse or dependent) on one of the ACA-created exchanges.
• If you’re married, you must file a joint return.
• You cannot be claimed as a dependent on anybody else’s tax return.
• You must not be eligible for “minimum essential coverage” through any other source (e.g., your employer, Medicare, Medicaid, etc.). There is, however, an exception to this requirement for people who have employer coverage that is deemed “unaffordable.”

One important point to note is that the credit is calculated on a monthly basis. In other words, you do not have to qualify for the entire year in order to be eligible for the credit. If your annual income is such that you would qualify and you meet the other the requirements for, say, 4 months, then you will be eligible for 4 months’ worth of the credit.

If you are confused or not sure if you qualify for a healthcare subsidy give us a call (215-240-1263) and we can help you determine if you are part of the 87% of people eligible for financial assistance with your healthcare insurance.