Your guide to 2014 Health Plan Subsidies!

Healthplan Subsidies 101


Angels Are Messengers From God


Federal health plan subsidies were created with the passage of PPACA also known as the Affordable Care Act or “Health Care Reform”, on March 23,2010. In 2014, most Americans who do not receive Health Insurance through their employer, Medicare, Medicaid or other government programs, will be required to purchase an approved individual health insurance plan or FACE A PENALTY. To help lower and middle income families comply with this Beginning on January 1, 2014, 2 types of health plan subsidies will be available for qualifying individuals:

1. Premium Tax Credit Subsidies

2. Cost Sharing Subsidies

Lets start with Premium Tax credits – as this is the type of health plan subsidy most people are familiar with! Put quite simply, premium tax credits are a type of subsidy that reduces the amount you pay each month in health insurance premiums. In order to receive a premium tax credit subsidy, you must purchase your health insurance plan through your state based Health Insurance Marketplace. Qualified Individuals will be given the option of receiving their subsidy on a monthly basis – to reduce monthly premium costs, OR on an annual basis – payable at the time you file your tax return. Should you elect to receive your health plan subsidy on a monthly or annual basis? Contact us today – we can help you decide!

Next, let’s consider Cost Sharing Subsidies. Cost Sharing Subsidies are available for many individuals and families who earn less than 250% of the Federal Poverty Level. Cost Sharing Subsidies help reduce your cost for medical services such as doctors office copays and deductibles. In order to receive Cost Sharing Subsidies, you must enroll in a Qualified Health Plan through your state based Health Insurance Marketplace. In addition, only certain plans are eligible to coordinate Cost Sharing Subsidies. Contact us today if you need help enrolling in your Cost Sharing Subsidy!





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