Subsidies Make ACA Health Insurance Affordable

Subsidies make health insurance more affordable, but many people forego coverage because they think it’s too expensive. Find out how Affordable Care Act (ACA) marketplace subsidies make getting free or low cost coverage possible for you and your family.

What subsidies are available through the federal marketplace?

There are 2 ways to save on ACA plans:

Premium tax credits lower your monthly plan payments, called premiums
The cost sharing reduction helps cover deductibles and other out-of-pocket costs for care you receive

Who is eligible for premium tax credits and how do they work?

ACA health plans are placed into 4 groups—bronze, silver, gold, and platinum—to make it easier for you to compare plans and understand costs. The premium tax credit lowers the amount you, if eligible, must pay for the monthly premium for the benchmark plan, which is the second-lowest cost silver plan available to in your area. You can enroll in any plan, regardless of metal group, but tax credits are based on the second lowest silver plan.

⊕ Read Understanding Metal Plans to learn more about the metal groups and costs.

Tax credit eligibility

Your tax credit is based on your:

Household income
Where your household income falls on the federal poverty line (FPL) shown below
The cost of your plan.
1. In 2024, if you or your family’s household income is less than 200% FPL, you pay $0 for your plan’s monthly premium.

Federal Poverty Guidelines (FPL) income thresholds for ACA coverage year 2024, showing 100 to 400 percent FPL for 1 to 8 members of a household

In addition to your household income, you must:

Not have access to affordable coverage through an employer (including a family member’s employer)
- Job-based coverage is considered affordable if it costs more than 8.39% of your household income in 2024
- Read our blog, An ACA Health Plan May Cost Less than Job-Based Insurance, to see how to calculate your plan’s affordability
Not be eligible for coverage through Medicare, Medicaid, the Children’s Health Insurance Program (CHIP)
Have U.S. citizenship or proof of legal residency
- Lawfully present immigrants whose household income is below 100 percent FPL can also be eligible for ACA tax subsidies if they meet all other eligibility requirements
Must file taxes jointly if you are married

Save even more with cost sharing reductions

Cost sharing reductions lower your deductibles, copayments, and coinsurance costs. To be eligible, you must meet all of 3 requirements:

You are eligible for tax credits
Your household income is between 100 to 250 FPL
You enroll in a silver-level plan

It’s not too late to get a $0 or low-cost ACA plan

There is still time to enroll in an ACA plan:

Enroll by December 15, 2023 for coverage to start on January 1, 2024
Enroll by January 15, 2024 for coverage to start on February 1, 2024

If you live in a state that has its own healthcare exchange, you may have more time to enroll.

American Exchange can see what tax credits you are eligible for

To see if you are eligible for ACA subsidies, contact American Exchange. Our licensed, independent health insurance benefits experts make sure you get all the savings you are eligible for. We help you find the best plan for your budget, health, and lifestyle needs at no cost or obligation to you. And we are available year-round to answer your insurance-related questions. Contact us today.

Call: 1.888.995.1674 Email: enroll@americanexchange.com

Visit Our ACA Insurance Webpage

Extended Hours During Open Enrollment (November 1, 2023 – January 15, 2024)

Monday – Friday from 8:00 a.m. – 8:00 p.m. Eastern

Saturday from 8:00 a.m. – 8:00 p.m. Eastern

We are closed the following holidays:

Thanksgiving: November 24-25
Christmas: December 23-25
New Year’s Day: January 1

ACA Health Plan Resources

We publish a blog covering important ACA marketplace topics the second Tuesday of each month, and more often during Open Enrollment, which begins November 1st each year. We also create handouts to address common topics impacting ACA enrollees. Click on the link below to read or download:

American Exchange is a licensed health insurance broker. Robert Huffaker, NPN 13568432

Photo courtesy of iStock

Subsidies Make ACA Health Insurance Affordable