The cost of individual health insurance could deter you from purchasing a plan. But did you know you may qualify for subsidies that can lower the cost of a private plan? Subsidies are benefits that take away a financial burden. There are several subsidies offered by the federal government that can reduce the cost of your premiums. These are often referred to as insurance tax credits.
Private health insurance companies receive payment directly. While you are comparing health insurance quotes on the Marketplace, you can see what your cost would be after the discounted premium is applied.
How do subsidies work?
You must meet certain eligibility criteria in order to qualify for a health insurance subsidy. To determine if you qualify, you will need to enter some personal information. This includes the following:
- Your name
- Your email address
- The state you live in
- Your birthday
- Your income
- If you smoke
- All members of your household
Getting a quote for a subsidy for individual health insurance will only apply to you as the applicant. If there are other members of your family who also need coverage, you must enter the above information for each member in need of health insurance.
Once you finish the application, you will receive immediate notice of your eligibility for a subsidy. If you qualify, the system will display the total amount for which you qualify.
You can use the subsidy to purchase personal health insurance on the Health Insurance Marketplace. Search for and compare plans available in your area.
Insurance companies offer plans in varying tiers. Each tier is categorized by a specific type of metal that represents the costs associated with the plan.
- Bronze health insurance plans have the lowest premium but the highest cost for services.
- Silver health insurance plans have higher premiums but lower copayments than bronze plans.
- Gold health insurance plans have high premiums but low copayments.
- Platinum health insurance plans have the lowest copayments, but their premiums are the highest.