The Affordable Care Act (ACA) reform kicks into high gear in 2014 and so will access to subsidies. If you buy your own medical insurance and your income falls within certain guidelines you may be one of the lucky ones.
You may receive a SUBSIDY to lower the cost of your plan:
- Only plans that are being sold INSIDE the exchanges will be “SUBSIDY ELIGIBLE”
- The subsidies are determined by Family Status (single, married, etc.), Income, and Smoker Status.
- For example, a single person earning roughly between $15,856 and $46,000 per year will be eligible for varying levels of subsidy to lower the cost of their health insurance.
- Those eligible for higher subsidies may also qualify for lower Deductibles and Copay amounts.
- The subsidy amount is higher the less you earn and of course.
How the subsidy will work:
- Assume a health insurance plan you need costs $327 per month and you a 30-year-old Non-smoker living in Washington. If you earn $31,200 per year ($15.00 per hour) you will pay the insurance company roughly $226 each month. The government will subsidize the remaining $101 per month.
- Those who are single and earn less than $15,857 per year in 2014 will get their health insurance through Washington’s Medicaid program. This is a big change. Before 2014, a low wage worker with no children could not usually qualify for Medicaid yet most could not afford a health insurance plan. Now they will get Medicaid and a free ride.
This is just the tip of the iceberg, and figuring out if you are eligible for a subsidy, and what that will be is confusing. That’s why we’re here. Health Insurance Team will guide you through the process of finding a health insurance plan that makes sense for your needs and budget. Just give us a call, we’re here to help.