10 Key Facts about ACA Subsidies For Premiums

1. The credits are available to people whose household income is less than 400 percent of the federal poverty level, which this year is $46,000 for an individual, or $78,000 for a family of three
2. Most of the 7 million people projected to shop for coverage in new online health insurance marketplaces will be eligible for the subsidies, expected to average $5,290 per enrollee
3. People who don’t have insurance coverage could face fines, which are $95 per adult and $47.50 per child the first year, or 1 percent of family income, whichever is greater
4. The law bases eligibility on household adjusted gross income, not assets. The value of a house, stocks or bank accounts is not taken into consideration
5. The exchange determines eligibility. It will have information from an applicant's last filed tax return. The application also asks people to project their income for 2014
6. Once an eligible applicant determines how much he or she wants, the exchange will arrange for the amount to be paid every month directly to the insurance company offering the plan the applicant select
7. The law requires consumers to contribute a specific percentage of income to the premium. It’s a sliding scale based on the federal poverty level
8. The credit is computed against the silver plan. If they choose a bronze plan with a lower premium, it’s possible the advance payment will cover the entire premium
9. People getting subsidies in 2014 will report them on tax returns they file in April 2015
10. The exchanges will report the level of coverage chosen by an individual, total premium and the amount of premium credit made to the insurance company

Source: Kaiser Health News
Source URL: http://www.kaiserhealthnews.org/Stories/2013/July/24/intervi...

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