When you buy coverage through the Health Insurance Market, maybe you can receive a tax credit that will reduce what you pay for your monthly premiums. It depends on your family size and income. You can apply part of the tax credit or all credit to your premium payments every month.
Save on Monthly Insurance Premiums from Marketplace Insurance
The Market will send the tax credit for the premium directly to your insurance company so you pay less for your premiums every month. This is known as “prepayment premium tax credit.” The savings will depend on your income for 2015 and the number of family members.
Prepayment premium tax credit chart
Generally, families with income levels below qualify for a tax credit. As they lower your income, the more will your savings.
|Family Size||Family income|
|One||$ 11.670 – $ 46.680|
|2||$ 15.730 – $ 62.920|
|3||$ 19.790 – $ 79.160|
|4||$ 23.850 – $ 95.400|
|5||$ 27.910 – $ 111.640|
|6||$ 31.970 – $ 127.880|
|7||$ 36.030 – $ 144.120|
|8||$ 40.090 – $ 160.360|
The income eligible for the reduced costs are higher in Alaska and Hawaii.
What if my income is too high to qualify for the premium tax credit?
You can use the marketplace to buy a health plan with no premium tax credits or other savings. You can also purchase a plan out of the health care marketplace, where they might find more options.
When you apply for coverage in the insurance market, it is important to double check the information you provide in your application. If the amount of income reported is incorrect, you may not receive the proper tax deduction of premiums.
- If you end up earning more money than estimated in the application, you may have to repay part or all of the tax deduction of premiums you received. You do this at your next tax return.
- If you end up earning less money than the estimate in your application, you may qualify for a higher tax deduction . You receive this refund on your next tax return. During the year, it is important to report as soon as possible insurance market, changes in income or family size. You can adjust your tax deduction and make sure it does not end up owing money on your next statement.
How to save on direct health care costs out of pocket
When you enroll in coverage through the insurance market, maybe you can get reduced costs – the payments you make for doctor visits, laboratory, medical and other covered services. You cut costs out of pocket depends on family size and income. You can get these cost savings pays (out of pocket) only if you buy a silver plan.
If you qualify for cost savings pay out of pocket deductibles , coinsurance , and copayments lower. These are costs you have to pay when you get health care services.
You can save on direct costs out of pocket only if you qualify for the tax credit for the premium.
- Households with incomes between 100% and 400% of the federal poverty level qualify for premium tax credits.
- Households with incomes between 100% and 250% of the federal poverty level also qualify for savings in direct costs out of pocket. This applies only if they enroll in a plan of Silver level.
Lower Medical Costs in Community and Premium Tax Credit
If you can not afford health insurance and do not qualify for coverage through Medicaid Program and Children’s Health Insurance (CHIP) can get health and dental services in a community health center paying little or nothing.
What you pay depends on your income. The centers are located in both urban and rural areas and offer:
- prenatal care
- vaccines for babies
- prescription drugs
- primary care
- referrals for specialty care, including mental health, substance abuse and HIV / AIDS