How to qualify for health insurance subsidies
How to Qualify for Health Insurance Subsidies with Aura Insure
Health insurance can be more affordable than you think, especially if you qualify for financial assistance known as a "subsidy." Subsidies are available to many individuals and families to help cover the cost of health insurance premiums and out-of-pocket expenses. At Aura Insure, we want to help you understand the different types of subsidies and how to determine if you’re eligible.
Types of Health Insurance Subsidies
There are two main types of subsidies available to help lower the cost of your health insurance:
1. Premium Tax Credits
2. Out-of-Pocket Savings Subsidies
Premium Tax Credits
Premium tax credits are a form of financial assistance designed to help reduce your monthly health insurance premium. If your household income falls below a certain threshold, you may qualify for this type of subsidy.
You can choose how to receive your premium tax credit:
- Advanced Premium Tax Credit: This option allows the government to pay a portion of your monthly premium directly to your health insurance provider.
- Tax Credit at Filing: Alternatively, you can opt to receive your credit as a lump sum when you file your federal tax return.
Qualifying for a Premium Tax Credit
To qualify for a premium tax credit, you need to meet the following criteria:
- Your household income must be between 100% and 400% of the Federal Poverty Level (FPL).
- You must not be claimed as a dependent on another person's tax return.
- If married, you must file a joint tax return.
- You must enroll in a plan through the health insurance Marketplace.
- You are not eligible for other minimum essential coverage, such as Medicaid or employer-sponsored insurance.
For example, the income limit for a single person is approximately $54,000, while for a family of four, it’s about $111,000 (based on 2023 FPL guidelines).
Out-of-Pocket Savings Subsidies
If you qualify for premium tax credits and your income falls between 100% and 250% of the FPL, you may also be eligible for out-of-pocket savings subsidies. These subsidies help reduce your out-of-pocket costs, such as deductibles, copayments, and coinsurance. However, this assistance is only available if you select a Silver-level health plan through the Marketplace.
How to Determine if You Qualify for Subsidies
Curious if you’re eligible for a subsidy? Aura Insure provides tools to help you estimate your eligibility. All you need is your household income and the number of people in your household.
Visit our Enrollment tool here: https://aca.aura-insure.com/acaenrollment
Enrollment Periods and Qualifying Life Events
Open Enrollment for ACA plans is annually from November 1st- January 15th.
In certain situations, you may qualify for a special enrollment period—generally if there’s been a significant change in your life, such as one of the following events:
- You got married or divorced
- You had or adopted a child
- You lost your health coverage (e.g., due to job loss)
- You permanently moved to a new area with different coverage options
These events, called "qualifying life events," may allow you to apply for health insurance outside the open enrollment period using the federal Marketplace or independent brokers like Aura Insure.
If you think you might qualify for a Special Enrollment Period, feel free to fill out this form and get a customized quote.
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Get Started with Aura Insure
Aura Insure makes it easy to find affordable health insurance and see if you qualify for subsidies. Contact us today or visit our website to start your journey to comprehensive health coverage!
