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There are basically three ways to purchase your health insurance if you are in individual or a family that doesn't get healthcare benefits from an employer or from Medicaid or Medicare. A crucial factor to help you determine which road to take is the amount of a subsidy (if any) you or your family is are eligible for. The Affordable Care Act subsidy can dramatically reduce your premium.
The three main ways to get coverage are:
(We can help you purchase a policy on or off the State of Connecticut's Exchange. Exchanges are also known as Marketplaces.)
There are significant advantages and disadvantages to each option. I will explain further in a soon-to-be written blog post. When I do, I will edit this page and put the link here in place of this paragraph.
The costs associated with your medical insurance during the ObamaCare era are going, to a large degree, be determined by whether or not you qualify for a subsidy. (If you are making an income that is substantially over 400% of the federal poverty level you can stop reading. You won't qualify for a subsidy. 400% of the FPL is about $49,000 for an individual and $93,000 for a family of four.)
In order to get a subsidy you must buy through your state's exchange. (We can help you with that in Connecticut, so call us and take advantage of our advice and services).
The subsidy calculator is below this text. The TV news people may not have given you all of the nuances. There a few other things you should know about the subsidies work before you use the calculator.
First if you are about to buy a policy, the subsidy associated with it will be based on future income. Previous income is a decent predictor of future income. So, using your current income to estimate your future income is a reasonable idea. But, the income you earn during the year of coverage is what determines your subsidy when all is said and done.
If you overestimate your subsidy for a policy that will cover you during 2014, you will owe the government money when you file your federal income tax return in 2015 to pay your taxes for 2014. Of course, the reverse is true, the government may owe you money if you underestimate the subsidy because your employment situation changes.
Another fact that many are not aware of is that the income in question is based on household income. Your household income is mostly determined by who is on your tax return, not by who lives in your home.
Another issue is that the income in question is your Modified Adjusted Gross Income. This means that some deductions are involved. The bottom line is, if you think you are close to qualifying for a subsidy it may be worth doing the math or using the calculator below.
Alston J. Balkcom
Connecticut Licensed Insurance Agent since 1985
“My son Joel Balkcom and I look forward to answering your questions”.
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