Some people qualify for financial help when they apply for health insurance and some don’t. We have a free estimator tool that lets you find out if you qualify for a health subsidy. Use our ACA Subsidy Calculator by putting your age, yearly income, and household size. See if you are eligible below!
What is a subsidy in health insurance and how does it work?
A subsidy is a type of financial help you get from the government that reduces your monthly health insurance premiums. Subsidies are given in the form of “Premium Tax Credits” which is applied to the plan you choose. For example, if the original plan was $500 a month but you qualified for $450 worth of health subsidies, you are only going to pay $50 a month.
To find out how much premium tax credit you will get, you can use our ACA Subsidy Calculator tool below!
Health Insurance Cost Calculator
Get an estimate on your premium tax credit with our Obamacare subsidy calculator tool.
Your Estimated Premium Tax Credit
Your Federal Poverty Level
Your Average Cost For a Silver Plan
If you didn’t qualify just know that there are still some options you have to get a subsidy through the marketplace. If this is you, give Cuspide Insurance a call at (305) 970-8583!
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How is an ACA subsidy calculated?
Health insurance subsidies are calculated by your age, household income, location, and where you land in the Federal Poverty Level. These 4 factors will determine if you qualify to receive any financial help.
Age
Since older individuals pay higher premiums, they will receive more premium tax credits every month to make sure that their plan stays affordable.
Location
Health insurance costs vary by state and depending on where you are, you will either pay more or less for your plan.
Household Income
The main factor in calculating ACA subsidies is the household income. The key number to look for is the modified adjusted gross income (MAGI). Those who earn more, will get less premium tax credits.
Your FPL percentage
It’s important to know that where you fall in the federal poverty level determines what you will pay for health insurance (more on this later).
These 4 factors go into the results when you use our ACA Subsidy Calculator tool!
Obamacare Income Limits Chart for 2024
The minimum income to qualify for a health subsidy in 2024 is $14,580 and the maximum income is $58,320. If you are under the ACA income limit, you will not be able to enroll and if you are over, you can still enroll but you will not receive any subsidies to help pay for your plan. On the left is the household size, on the middle is the 100% FPL level, and on the right is the 400% FPL level.
| Household | 100% | 400% |
|---|---|---|
| 1 person | $14,580 | $58,320 |
| 2 people | $19,720 | $78,880 |
| 3 people | $24,860 | $99,440 |
| 4 people | $30,000 | $120,000 |
| 5 people | $35,140 | $140,560 |
| 6 people | $40,280 | $161,120 |
| 7 people | $45,420 | $181,580 |
| 8 people | $50,560 | $202,240 |
Federal Poverty Level for Health Insurance
Below is the Federal Poverty Level chart for 2024. This is how you will determine if you qualify for a healthcare subsidy. To be eligible for an Obamacare subsidy, you must fall between 100 to 400% of the FPL with your household income. However many people are in your income taxes will be in your health insurance application (even if some are not getting coverage) and you must make the minimum depending on your family size.
| Family Size | 100% FPL | 200% FPL | 300% FPL | 400% FPL |
|---|---|---|---|---|
| 1 person | $14,580 | $29,160 | $43,740 | $58,320 |
| Family of 2 | $19,720 | $39,440 | $59,160 | $78,880 |
| Family of 3 | $24,860 | $49,720 | $74,580 | $99,440 |
| Family of 4 | $30,000 | $60,000 | $90,000 | $120,000 |
| Family of 5 | $35,140 | $70,280 | $105,420 | $140,560 |
| Family of 6 | $40,280 | $80,560 | $120,840 | $161,120 |
| Family of 7 | $45,420 | $90,840 | $136,260 | $181,680 |
| Family of 8 | $50,560 | $101,120 | $151,680 | $202,240 |
This chart is based on the HHS poverty guidelines for 2024.
Average Cost of Health Insurance with and without Subsidy
The average premium payment for health insurance with a subsidy in 2024 is $52 a month and $408 a month without. This is based on the average income in the United States and the lowest-cost silver plan. Below are the costs by state. These are just averages, if you want the most affordable health insurance, contact Cuspide!
Average Health Insurance Cost by State
| State | With Subsidy | Without Subsidy |
|---|---|---|
| Alabama | $61 | $602 |
| Alaska | $4 | $490 | Arizona | $33 | $317 | Arkansas | $63 | $405 | California | $65 | $448 | >Colorado | $52 | $383 |
| Connecticut | $63 | $677 |
| Delaware | $60 | $505 |
| Florida | $60 | $393 |
| Georgia | $63 | $341 |
| Hawaii | $25 | $437 |
| Idaho | $61 | $383 |
| Illinois | $45 | $362 |
| Indiana | $63 | $381 |
| Iowa | $62 | $419 |
| Kansas | $63 | $436 |
| Kentucky | $55 | $387 |
| Louisiana | $64 | $497 |
| Maine | $66 | $502 |
| Maryland | $22 | $326 |
| Massachusetts | $43 | $384 |
| Michigan | $64 | $308 |
| Minnesota | $79 | $307 |
| Mississippi | $64 | $473 |
| Missouri | $61 | $457 |
| Montana | $56 | $386 |
| Nebraska | $64 | $519 |
| Nevada | $63 | $349 |
| New Hampshire | $52 | $309 |
| New Jersey | $14 | $389 |
| New Mexico | $42 | $381 |
| New York | $30 | $770 |
| North Carolina | $64 | $450 |
| North Dakota | $52 | $392 |
| Ohio | $58 | $340 |
| Oklahoma | $64 | $460 |
| Oregon | $59 | $422 |
| Pennsylvania | $62 | $346 |
| Rhode Island | $46 | $363 |
| South Carolina | $50 | $488 |
| South Dakota | $37 | $424 |
| Tennessee | $32 | $459 |
| Texas | $62 | $410 |
| Utah | $64 | $431 |
| Vermont | $24 | $566 |
| Virginia | $63 | $361 |
| Washington | $0 | $377 |
| West Virginia | $55 | $521 |
| Wisconsin | $64 | $384 |
| Wyoming | $63 | $529 |
Frequently asked questions
What if I overestimate my income for Obamacare?
Overestimating your income in the ACA means that at the end of the year you may be returned some extra money because you should have received more premium tax credits. Since you apply with your projected income, some people get it wrong (and that’s ok). That’s why it’s important to get as close of an estimate as possible when enrolling in Obamacare insurance.
For example, if you apply with an estimated income of $50,000 but you made $40,000 that year then you will get back the difference in premium tax credit between 50k and 40k. Let’s say you should have received $200 a month of subsidy but you only got $71 a month. We will subtract 200 – 71 to get $129. 129 x 12 months of the year is $1,548 that you may be returned because of putting the incorrect income in your application.
What if I underestimate my income for Obamacare?
Conversely, if you underestimate your income when applying for health insurance you will face some problems when it is time to do your taxes. If you put less income inside the health insurance marketplace application then at the end of the year you will have to return the difference in premium tax credits.
For example, if you put $40,000 of estimated yearly income but you really made $50,000, then you will have to give back the difference in premium tax credit between the extra 10K of income. Which in this example would be around $1,500 because the $129 credit difference x 12 months.
Who qualifies for ACA subsidies?
To be eligible for an Obamacare subsidy you will have to make the minimum income depending on your household size (how many people are in your taxes) and be inside the 100 to 400% range of the FPL (Federal Poverty Level). In the United States, usually 4 out of 5 household will qualify to get an ACA subsidy, so you most likely will qualify. Check with our calculator tool above to get an estimate or reach out to us at (305) 970-8583.
What is the difference between Premium Tax Credits and Cost-Sharing Reductions?
There are 2 types of subsidies in the health insurance marketplace and they are Premium Tax Credits and Cost-Sharing Reductions (CSRs). Premium Tax Credits are monthly credits that are given to you to help pay your monthly premiums. Cost-Sharing Reduction is a discount that is applied when you select a Silver Plan through the marketplace, which lowers your deductibles, copays and premium. Learn more with our Premium Tax Credit guide. If you are under 250% of the Federal Poverty Line, you will be eligible for CSRs. Around 80% of Americans will be eligible for premium tax credits and cost-sharing reductions.
Maximize your Savings with our ACA Subsidy Calculator
For those looking to get coverage we suggest checking out our Obamacare subsidy calculator above to see how much you will pay for a health plan. After, you can decide if you want to apply for a health plan. Contact us today at (305) 970-8583. Enrolling is easy if you do it with us at Cuspide Insurance!
