The Premium Tax Credit is a type of subsidy, or "discount", that is applied to your monthly insurance rate, and paid for by the government as part of Obamacare and health care reform.
To qualify for the Premium Tax Credit, your income must be at or below 4x the Federal Poverty Line. Depending on your household size and the state you live in, these income ranges are as follows:
Within these ranges, the lower your income, the more you will save on your monthly health insurance rate. In other words, those with lower incomes receive a higher Premium Tax Credit. If your income falls below these levels, you may be eligible for Medicaid depending on the state you live in. Check with the Federal Health Insurance Marketplace or your state’s exchange to learn more.
If your income falls closer to the middle of these ranges, you may also be eligible to save on out-of-pocket costs. Learn about this additional subsidy program here.
What if my income changes after enrolling in a plan?Changes in your household income makes you eligible for the Special Enrollment Period. During Special Enrollment, you can update your current plan, or enroll in a new one. Depending on whether your income is decreasing or increasing, the changes would be to either reduce/remove your Premium Tax Credit, or to increase it.
In the event you end up receiving a Premium Tax Credit that is greater than what you should have been given, you would have to repay any overages during tax season. In the event you end up receiving too little of a Premium Tax Credit, then you will end up being paid a tax refund for the remaining balance.
To see if you qualify, and to compare plans with an estimate of your Premium Tax Credit, please submit your zip code. You can also call (833) 430-0654 to speak with an agent.