2015 Alaska Health Insurance Marketplace Tax Subsidy Income Level Chart

While most states use the same income ranges to determine eligibility for tax subsidies through the health insurance marketplace, Alaska has a different range.  Below is the range for Alaska residents.  Be sure to read up on other rules to find out if you can receive premium assistance.  Or if you prefer, simply use our subsidy calculator tool.

Alaska Health Insurance Marketplace Tax Subsidy Requirements

Income levels required to receive tax subsidies on health insurance plans purchased on the marketplace.
Number of People in Household
123456
Lower Premiums if income is between:$14,580 – $58,320$19,660 – $78,640$24,740 – $98,960$29,820 – $119,280$34,900 – $139,600$39,980 – $159,920
Lower Premiums AND Lower Out-of-Pocket Costs if income is between:$14,580 – $36,450$19,660 – $49,150$24,740 – $61,850$29,820 – $74,550$34,900 – $87,250$39,980 – $99,950
You may not qualify for Medicaid if your income is below:$14,580$19,660$24,740$29,820$34,900$39,980

 

Health insurance marketplace tax subsidies are a great way to help pay for the cost of insurance when you buy a plan. Make sure to take advantage.

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2015 Hawaii Health Insurance Marketplace Tax Subsidy Income Level Chart

While most states use the same income ranges to determine eligibility for tax subsidies through the health insurance marketplace, Hawaii has a different range.  Below is the range for Hawaii residents.  Be sure to read up on other rules to find out if you can receive premium assistance.  Or if you prefer, simply use our subsidy calculator tool.

Hawaii Health Insurance Marketplace Tax Subsidy Requirements

Income levels required to receive tax subsidies on health insurance plans purchased on the marketplace.
Number of People in Household
123456
Lower Premiums if income is between:$13,420 – $53,680$18,090 – $72,360$22,760 – $91,040$27,430 – $109,720$32,100 – $128,400$36,770 – $147,080
Lower Premiums AND Lower Out-of-Pocket Costs if income is between:$13,420 – $33,550$18,090 – $45,225$22,760 – $56,900$27,430 – $68,575$32,100 – $80,250$36,770 – $91,925
You may qualify for Medicaid if your income is below:$18,699$25,295$31,892$38,488$45,085$51,681

 

Health insurance marketplace tax subsidies are a great way to help pay for the cost of insurance when you buy a plan. Make sure to take advantage.

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Health Insurance Marketplace Tax Subsidy Calculator

A big aspect of the Affordable Care Act is the availability of tax subsidies for people that fall into certain income brackets.  You can check those brackets out here.  We also have this handy subsidy calculator that can help determine if you might be eligible for premium assistance when you purchase a health insurance plan. Before you assume that you will get a subsidy, make sure your non-income eligibility requirements are met.

Marketplace Tax Subsidy Calculator

2015 Obamacare Subsidy Calculator Provided by: SubsidyCalculator.com

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2015 Health Insurance Marketplace Tax Subsidy Income Level Chart

A big piece of the Patient Protection and Affordable Care Act (PPACA) was the availability of a marketplace tax subsidy to help offset the cost of health insurance when a plan is purchased on the health insurance marketplace, or exchange. The system was designed to help those with lower income levels afford quality coverage. The question that we get all the time is, “what are those levels?” Here is a chart showing the income levels required to receive a marketplace tax subsidy.

 

Income levels required to receive tax subsidies on health insurance plans purchased on the marketplace.
Number of People in Household
123456
Lower Premiums if income is between:$11,670 – $46,680$15,730 – $62,920$19,790 – $79,160$23,850 – $95,400$27,910 – $111,640$31,970 – $127,880
Lower Premiums AND Lower Out-of-Pocket Costs if income is between:$11,670 – $29,175$15,730 – $39,325$19,790 – $49,475$23,850 – $59,625$27,910 – $69,775$31,970 – $79,925
If your state is expanding Medicaid, you may qualify for Medicaid if income is below:$16,243$21,983$27,724$33,465$39,206$44,497

Note: Hawaii and Alaska have different income ranges.

What is the Definition of Yearly Income for Health Insurance Marketplace Tax Subsidy Purposes?

The yearly income that is used to determine eligibility for tax subsidies is, for most people, the adjusted gross income. The term that is used on the marketplace application is modified adjusted gross income. This figure takes into account income such as tax-exempt Social Security payments, interest, and foreign income.

The yearly income that is used to determine eligibility for tax subsidies is, for most people, the adjusted gross income.

The modified adjusted gross income also takes into account deductions that you may claim on your tax return. These deductions should be entered during the marketplace application process:

  • Student loan interest
  • Educator expenses
  • Job-related moving expenses
  • Alimony payments
  • Individual retirement account contributions if you do not have a retirement account through work
  • Tuition costs if you pay them out of pocket and claim them on your taxes

Do not enter items such as mortgage interest and charitable contributions. These are taken into account elsewhere.

What if My Income Changes During the Year?

One of the biggest challenges to determining eligibility for a marketplace tax subsidy is estimating your future earnings. When you are filling out the health insurance application online, you are guessing what your income is in the next year. For some people that can be a difficult task. If your income changes during the year, you must report that to the marketplace as soon as possible.

Who to Include as a Member of Your Household?

As you can see, your chances of eligibility for a marketplace tax subsidy increases if you have more people in your household. So the question is, who all should be included as a member of your household? Short answer:

  • Everyone you will claim as a dependent on your tax return
  • Children that are living with you
  • Spouse (you must file jointly to receive a higher marketplace tax subsidy)

The long answer to who counts as a member of your household can be found here.

Make sure to include everyone in the household, even those not needing health insurance through the exchange. Much like reporting income changes, if your living arrangements at home change, you need to report that as soon as possible.

Exception to Claiming a Spouse

There is an exception to the rule that married couples must file jointly to receive a marketplace tax subsidy. If you are living separately from your spouse and are a victim of domestic abuse/violence or spousal abandonment, you may claim “unmarried” on the marketplace application without penalty.

Receiving Lower Out-of-Pocket Costs Through the Health Insurance Marketplace

As you can see from the table above, there is also a chance that you could receive lower out-of-pocket costs through the health insurance marketplace in addition to a tax subsidy. If your yearly income falls in the range shown above, you are eligible. The only catch is that you MUST enroll in a silver plan. Make sure you take a look at all the plans available to see if this benefit is the right one for you.

What if I am a Dependent on Someone Else’s Tax Return? Can I Get a Marketplace Tax Subsidy?

If you claimed as a dependent on someone else’s tax return you are not eligible to receive a subsidy through the health insurance exchange. You are still able to purchase a health insurance plan, but you will pay the full price for the plan. There are other options available as well.

Are all Marketplace Tax Subsidies the Same?

No, subsidies are given on a sliding scale. If you are at the higher end of the ranges shown above, you will not receive as much financial assistance when buying a health insurance plan on the exchange as someone at the lower end of the range.

Take Advantage of Subsidies

One goal of the Affordable Care Act was to provide health insurance at more affordable rates. Politics aside, the marketplace tax subsidy that is available to many people helps them purchase quality medical insurance at a low rate. It may not always be as low as what an employer could offer, but in many cases it is. When you fill out your application at the next Open Enrollment, make sure you take full advantage of a subsidy that is available to you.

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What is the ACA Individual Mandate Penalty?

With the Patient Protection and Affordable Care Act, or Obamacare, now fully in effect, there is a mandate that every American purchase health insurance or pay a tax as a penalty.  So what is the dollar amount of the ACA individual mandate penalty, and what exactly would need to happen to cause someone to have to pay the penalty?  Lets take a look.

Exemptions from the Individual Mandate Penalty

Not everyone without health insurance that lives in the United States will be required to pay the individual mandate penalty.  If any of the following apply, then the penalty might not be required.

  • Religious opposition to accepting health insurance benefits
  • Membership in an Indian tribe
  • Incarceration
  • Family income below the threshold for filing an income tax return
  • You pay for than 8% of your income for health insurance after employer contributions and tax credits are taken into account
  • Undocumented immigrant

If an individual does not fall into any of those categories, then having insurance from the following sources would then exempt him or her from the individual mandate penalty.

  • Medicare
  • Medicaid or CHIP
  • TRICARE
  • Employer-sponsored plan
  • Individual insurance that is at least at the Bronze level
  • Veteran’s health program
  • A grandfathered health plan that was in existence before the ACA was enacted

If someone does not have one of those types of insurance plans, then odds are he or she will be required to pay the individual mandate penalty.

How Much is the ACA Individual Mandate Penalty?

The penalty for not having health insurance will increase as the years go by.  For the first 3 years of the law’s existence, the penalty will look like this:

YearGreater of:AdultChildFamily Max
20141% of family income, or:$95$47.50$285
20152% of family income, or:$325$162.50$975
20162.5% of family income, or:$695$347.50$2,085

 

 

Some key notes:

  • Definition of income: Total income in excess of the filing threshold ($10,000 for individuals, $20,000 for families, in 2013)
  • Penalty is pro-rated by the number of months without coverage
  • A single gap of coverage of less than 3 months will not result in a penalty.  This is of importance for those enrolling in the initial Marketplace Open Enrollment.  The Open Enrollment deadline is March 31, which will start plans on either April 1 or May 1.  For those without coverage on January 1, this would result in a lack of coverage for over 3 months, and would seem to then result in an individual mandate penalty.  However, HHS has said that individuals that fall in this bucket can file a waiver to avoid the penalty.
  • The penalty cannot be greater than the national average of Bronze coverage on the exchanges
  • After 2016 the individual mandate penalty increases by the cost of living index

There are many things to consider when it comes to insuring yourself and your family.  The ACA individual mandate penalty is one of those things.

Source: Healthcare.gov

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