Subsidies

New insurance policies might qualify for government aid, known as “subsidies”. It all depends on how much you make.

Here is how to determine if you are eligible to receive a subsidy, which is government aid that helps to pay your health insurance.

The numbers below are your modified adjusted gross income – how much you actually pay taxes on. If you earn $50,000 and have $10,000 in deductions (for example, for mortgage and business costs), you are only paying taxes on $40,000 – and that is what we are referring to below:

If your income is under $12,000 as an individual, you are eligible to receive Medicaid.

If you are 2 people, and your income is below $15,000, you are eligible for Medicaid.

If you are a family of four, and your income is below $23,000, you are eligible for Medicaid.

If you are an individual and pay taxes on income that ranges between $12,000 and roughly $45,000, you qualify to receive some government subsidy money to help pay for your insurance. You would therefore want to buy your insurance through the exchange (You may use an agent to sell you the exchange policy, and not have to wait on the phone or deal with the exchange websites!!)

If you are a couple and you collectively pay taxes up to $62,000, you qualify to receive some government subsidy money to help pay for your insurance. You would therefore want to buy your insurance through the exchange. (You may use an agent to sell you the exchange policy!)

If you are a family of three, and you collectively pay taxes on up to $78,000, you qualify to receive some government subsidy money to help pay for your insurance. You would therefore want to buy your insurance through the exchange. (You may use an agent to sell you the exchange policy!)

If you are a family of four, and you collectively pay taxes on up to $94,000, you qualify to receive some government subsidy money to help pay for your insurance. You would therefore want to buy your insurance through the exchange. (You may use an agent to sell you the exchange policy!)

If your income is above the numbers mentioned above, you are better off buying a plan that is “off the exchange”, since you are not eligible to receive supplement money.

The plans off the exchange are much larger networks, and are a much better option if you do not need to purchase insurance through the exchange. (Again, the reason to purchase on the exchange is if you are eligible for a government subsidy to help pay for your insurance).