If you live in Ohio and are considering signing up for health insurance through the Affordable Care Act (ACA), also known as Obamacare, you may be eligible for financial assistance in the form of subsidies. These subsidies can help make health insurance more affordable, so it's important to understand how they work and whether you may be eligible.
The ACA offers two types of subsidies to help make health insurance more affordable: premium tax credits and cost-sharing reductions.
Premium Tax Credits
Premium tax credits are available to individuals and families with incomes between 100% and 400% of the federal poverty level (FPL). In Ohio, that means individuals with incomes between $12,880 and $51,520 and families of four with incomes between $26,500 and $106,000 may be eligible for premium tax credits.
The amount of the premium tax credit is based on your income, the cost of health insurance in your area, and the plan you choose. The lower your income, the higher your premium tax credit will be. The premium tax credit is paid directly to your insurance company, which reduces your monthly premium.
Cost-Sharing Reductions
Cost-sharing reductions are available to individuals and families with incomes between 100% and 250% of the FPL. In Ohio, that means individuals with incomes between $12,880 and $32,200 and families of four with incomes between $26,500 and $65,500 may be eligible for cost-sharing reductions.
Cost-sharing reductions lower the amount you must pay out-of-pocket for health care services, such as deductibles, copayments, and coinsurance. The amount of the cost-sharing reduction is based on your income and the plan you choose.
How to Apply for Subsidies
To apply for subsidies, you need to enroll in a health insurance plan through the Health Insurance Marketplace, either online at healthcare.gov or by phone at 1-800-318-2596. When you apply for coverage, you'll be asked about your income and household size to determine your eligibility for subsidies.
If you're eligible for subsidies, you'll see the amount of the premium tax credit and cost-sharing reduction you qualify for when you compare plans in the Marketplace. You can then choose the plan that best meets your needs and budget.
In conclusion, if you live in Ohio and are considering signing up for health insurance through the Affordable Care Act, you may be eligible for financial assistance in the form of subsidies. Premium tax credits can help lower your monthly premiums, while cost-sharing reductions can lower the amount you have to pay out-of-pocket for health care services. To apply for subsidies, you need to enroll in a health insurance plan through the Health Insurance Marketplace and provide information about your income and household size.