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Affordable Care Act Subsidy Questions Answered

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UPDATED: Jul 1, 2013

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There are new parts of the Affordable Care Act (also known as ObamaCare) which will take effect beginning January 1, 2014. The most notable is the requirement for everyone to carry health insurance along with the insurance exchanges which will be managed by the government.


Part of the bill will provide subsidies for those individuals and families that fall below a specific income level. As with most things surrounding income and tax law, the details are not exactly cut and dry. There are some basic pieces which anyone who may qualify for a health insurance subsidy should be aware of.


  1. Individuals and families that currently have insurance purchased on their own will not automatically be disqualified for the subsidy. If you are shopping and buying health insurance on your own, rather than getting it through an employer, then you may still be eligible if you meet the other requirements.
  2. In order to qualify for the insurance subsidy, your income must be between 100 and 400 percent of the federal poverty limit. This amount is your modified adjusted gross income as reported on your taxes. The 2013 amount for a single family household is $11.490, so the maximum that person could make before becoming ineligible for the subsidy is $45,960
  3. Individuals and families which do not have to report their income to the government because they are below a certain threshold are exempt from having to obtain health insurance.
  4. Student health insurance purchased through universities do not qualify as employer sponsored plans. Therefore, students who are offered coverage are not automatically disqualified from receiving a subsidy.


For further reading, visit this Washington Post Article.

About Eric Stauffer

Author: Eric StaufferI am a former insurance agent and banker turned consumer advocate. My priority is to help educate individuals and families about the different types of insurance they need, and assist them in finding the best place to get it.

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