OBAMACARE IS GREAT FOR THE GRASS ROOTS AMERICANS

19 Sep

Will I qualify for lower costs on monthly premiums?

HASA - OBAMACARE INSURANCE 2014

When you get health insurance coverage in the Marketplace, you may be able to get lower costs on monthly premiums. This depends on your income and family size.

Pay lower costs for premiums each month

In the Health Insurance Marketplace you may be able to lower the costs of your health insurance coverage by paying lower monthly premiums. You’ll see the amount of savings you’re eligible for when you fill out your Marketplace application after October 1, 2013. Prices shown for insurance plans will reflect the lower costs.

These lower costs are handled with a tax credit called the Advance Premium Tax Credit. But these tax credits can be applied directly to your monthly premiums, so you get the lower costs immediately.

Get an estimate of your costs and savings before October 1

Until October 1, you can get a rough estimate of costs and savings by using the Kaiser Family Foundation calculator.

Savings depends on income and family size

The amount you save depends on your family size and how much money your family earns. In general, if your income falls within the following ranges you’ll qualify to save money on your premiums in 2014. The lower your income within these ranges, the more you’ll save. (The amounts below are based on 2013 numbers and are likely to be slightly higher in 2014.)

  • $11,490 to $45,960 for individuals
  • $15,510 to $62,040 for a family of 2
  • $19,530 to $78,120 for a family of 3
  • $23,550 to $94,200 for a family of 4
  • $27,570 to $110,280 for a family of 5
  • $31,590 to $126,360 for a family of 6
  • $35,610 to $142,440 for a family of 7
  • $39,630 to $158,520 for a family of 8

If your income falls below the amounts shown, you may qualify for coverage under your state’s Medicaid program. But if your state is not expanding Medicaid in 2014–and you don’t qualify for Medicaid under your state’s rules–you can’t get lower costs on Marketplace coverage based on your income. You’d have to pay the entire cost of a Marketplace insurance plan.

How to estimate your income

When you apply for lower costs in the Marketplace, you’ll need to estimate your household income for 2014.

For most people, you can use your household’s adjusted gross income for this estimate. If you know your 2013 adjusted gross income, use that and take into account any changes you expect in 2014.

Another way to estimate your income is to add up the following items for all the people in your household, based on what you think they’ll receive in 2014:

  • Wages
  • Salaries
  • Tips
  • Net income from any self-employment or business
  • Unemployment compensation
  • Social Security payments

Other kinds of income to include when estimating your 2014 income are: rental income, interest, dividends, capital gains, annuities, alimony, and some retirement and pensions.

Modified adjusted gross income

When you fill out the Marketplace application, a number called “modified adjusted gross income” (MAGI) will be used.

Modified adjusted gross income is generally your household’s adjusted gross income plus any tax-exempt Social Security, interest, and foreign income you have. It’s used to determine your eligibility for lower costs on Marketplace coverage, and for Medicaid and the Children’s Health Insurance Program (CHIP).

You don’t have to figure out this income yourself. The math will be done for you when you apply through the Marketplace or your state agency.

For Medicaid, it also matters if you’ve had a change in household income since your last tax return. When you apply you’ll need to tell us your household income now and also estimate the amount for 2014, taking into account changes that you know about.

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