How do you get help paying for health insurance and health coverage? It depends on how much you earn. In 2023, you’re eligible for Obamacare subsidies if the cost of the “benchmark plan” (the second-lowest-cost silver plan on the exchange) costs more than a given percent of your income, up to a maximum of 8.5%. The cut-off threshold increases on a sliding scale depending on your income. The discount on your monthly health insurance payment is also known as a Premium Tax Credit (or PTC) or Advance Premium Tax Credit (APTC).
2023 health plans are measured against your projected income for 2023 and the benchmark plan cost. You qualify for subsidies if you pay more than 8.5% of your household income toward health insurance.
Consumers in these plans saved an average of $800 on their premiums in 2021 as a result of the American Rescue Plan. For subsidized enrollees, the median deductible dropped by 90% from $450/yr to just $50. Without the new Inflation Reduction Act, this help would have ended in 2022. Instead, it will continue to be available through December 31, 2025.
Next Steps
Bottom line – it pays to check your eligibility level no matter what your income is. Use the calculator above to figure out your subsidy rate or to see if switching is the right choice for you.