Obamacare was made through The Patient Protection and Affordable Act that was made in 2010. People may think that it will only have an impact on the health insurance, but its impact can be has extended to the healthcare sector of America. The very first requirement that you need to meet is that you must have a health insurance for at least nine months in a year or you will have to pay tax. The tax could be almost 2.5% of your income.
If you want to apply for the insurance, it is open for a certain time of the year. When you do apply for it, you must compare the costs that you are facing over the year, which includes you’re the amount that will be deducted annually, and the percentage that will be covered. On the other hand, if you are unable to get the insurance in case you can’t afford it, you will not have to pay the tax. The level of poverty that you must meet to be eligible for this will increase each year with the level of inflation each year. Some of the factors that will determine how much Obamacare may cost you are your income, age, the place you live at, your family size, and the kind of plan that you may have.
The amount of income that you need to have to be able to be eligible for 2019 Obamacare are dependent on, and also higher than, federal poverty level (FPL) of last year. These are the discounts that are given to you on your health insurance payment and they are also popularly called premium tax credits.
Minimum Income for Obamacare Subsidies 2019
There is a minimum income that will make you eligible for Obamacare and this will change with the number of people. To be able to apply for Obamacare subsidies, you and your household must be under the federal poverty line completely in 2019. Below are the minimum household income levels that make you eligible for ACA subsidy:
- 1 person: $12,140
- 2 people: $16,460
- 3 people: $20,780
- 4 people: $25,100
- 5 people: $29,420
- 6 people: $33,740
- 7 people: $38,060
- 8 people: $42,380
This may also differ from state to state. There are some states in which if you are under 139% of the federal poverty level, you will be offered Medicaid in the place of Obamacare. If the household has more than 8 people then each person will add $4320 to the total household income. Hawaii and Alaska are the only two states that have higher income requirements among all the states.
Maximum Income for Obamacare Subsidies 2019
If you want to remain eligible for Obamacare subsidies, your household income must not exceed 400% of the federal poverty level of America. The details regarding the amount that will make a cutoff point for 2019 are as follows:
- 1 person: $48,560
- 2 people: $65,840
- 3 people: $83,120
- 4 people: $100,400
- 5 people: $117,680
- 6 people: $134,960
- 7 people: $152,240
- 8 people: $169,520
If you need more details regarding any state in particular, you can find it online. Alaska and Hawaii are two states that are unique and may have different standards.
What is the purpose of these subsidies?
The information that has been provided along with the amount of income for households is applicable to insurance plans that are related to the health of you and your family in 2019. The subsidies that were given under the Affordable Care Act will still be continued even though there have been changes in Washington, D.C. the income levels that are to be followed in 2010 would have been decided in the first month of 2019.
What will be counted as income?
The income that you must report is the gross income that has been modified and adjusted. In simpler words, it is the income that you report in your income tax returns, along with a few changes. It is not that difficult to calculate it and it can be determined by taking help from the internet or other reliable sources.
What if your income is either higher or lower?
It is not like you will not be able to get Obamacare if your income is too high or too low, but you will be eligible for the premium discounts that are given to those people whose income is in the range.
Income under 100% of FPL
If your income is under 100% of the federal poverty level, you will not be eligible for the premium tax credits that are offered to the people who are in the range. In this case, you can apply for Medicaid. The rules of Medicaid may differ from state to state.
Income over 400% of FPL
In case your income is over 400% of the federal poverty level, you are not eligible for Obamacare, but you can definitely find other healthcare insurance plans online on sites like Healthcare.com. They are almost the same as plans that allow subsidies, but are definitely cheaper. A fact about plans is that you cannot buy them government websites as they are not available there.
What are Cost-Sharing Reductions (CSRs)?
Health insurance providers are bound to give added discounts on silver plans to the members who earn between 100% and 250% of the federal poverty level. These discounts will help in reducing the healthcare charges of specialists. These benefits don’t apply to bronze or gold plans. The amount of subsidy that is given based on cost sharing will change from plan to plan. CSRs will change with the level of income just like tax credits. People with lower income levels will be facing lower limits. It has a scale just like the tax credit does.
How much can the subsidies cover?
Many analysts have reported that almost 98% counties did have bronze plans that had $0 payments made monthly related to premiums, which makes 150% of the federal poverty line. If you do decide to join a health plan, you may be asked to cover some of the costs, but the subsidies will give you the freedom of joining as well. For more information, we suggest you check this 2019 Obamacare Subsidies Income Calculator.