health insurance subsidies Archives

What Are the Federal Poverty Levels (FPL)?

Your salary and any other money your family brings into the household determine how much you will pay for health insurance. Why? Because, depending on what your salary is in relation to the Federal Poverty Level (FPL), you could qualify for tax subsidies that will reduce your premiums. Learning about the Federal Poverty Level can help you in your search for an affordable health insurance plan.

Federal Poverty Levels for 2022

To know if, and what kind of, subsidies you qualify for when it comes to health insurance, you’ll need to know how your salary relates to the Federal Poverty Level. The following are the 2022 Poverty Guidelines for salaries in the 48 Contiguous States and the District of Columbia: silhouette of a family of 4

$13,590 for individuals
$18,310 for a family of 2
$23,030 for a family of 3
$27,750 for a family of 4
$32,470 for a family of 5
$37,190 for a family of 6
$41,910 for a family of 7
$46,630 for a family of 8

For families/households with more than 8 persons, add $5,900 for each additional person.

Federal Poverty Level amounts are higher in Alaska and Hawaii. Alaska starts at $16,990 for an individual, and Hawaii starts at $15,630 for an individual.

Federal Poverty Level Cut-Offs

The FPL for a given calendar year plays a key factor in determining eligibility for reduced-cost health care and health insurance. If your salary is at or below certain percentages of the Federal Poverty Level, you qualify for Marketplace subsidies. The FPL cut-off is:

Annual income between 100% and 400% of the FPL

In all states, if your income level is in this range, you will qualify for premium tax credits for ACA health coverage, which can lower your monthly premium for a Marketplace health insurance plan.

moneybag with bills in it — *Now you can save even more money thanks to Biden’s Rescue Plan Act.*

This cut-off is fairly new: President Biden extended subsidies to more Americans with the American Rescue Plan Act, so that those who earn up to 400% of the Federal Poverty Level can now receive subsidies to purchase health insurance through the ACA Marketplace. The ARP also requires that Americans pay no more than 8.5% of their income on health insurance premiums, and provides a larger tax credit to people who already receive financial assistance.

As of April 1 of this year, anyone buying their health insurance through the ACA Marketplace is able to receive the tax credits if they qualify.

Looking for health insurance? Comparing plans is the best way to find an affordable plan that provides the right level of coverage for you. Before you start doing the work of comparing on your own, come to EZ. We will make the process quicker and easier by comparing available plans in your area in minutes. Our licensed agents work with all the top-rated insurance companies in the nation and can go over your budget and needs, and find the best plan for you and your family. We compare plans and offer guidance at no cost to you. To get free quotes, simply enter your zip code in the bar above, or to speak directly with an agent, call 888-350-1890.

Don’t Qualify For a Subsidy? EZ’s Got You Covered!

Qualifying for health insurance subsidies has gotten much easier these days, now that President Biden has extended premium subsidies to those who earn up to 400% of the federal poverty level. That means that millions more Americans can save hundreds of dollars a year on insurance – but it doesn’t mean that everyone qualifies. So what if you don’t qualify for a subsidy? Can you still save money? When you work with an EZ agent, you will! Find out what the qualifications are for a subsidy and how we can help you save even if you don’t qualify.

Who Qualifies For A Subsidy?

Because of Biden’s American Rescue Plan Act (ARP), qualifying for subsidies is not as difficult as it used to be. To be eligible, you now must either:

Have an income at or below 400% of the Federal Poverty Level.
Have premium payments that exceed 8.5% of your overall household income.

Individuals whose income is lower than 400% the Federal Poverty Level will receive higher subsidies.li

Because of this expansion, more than a third of the people who bought health insurance during the COVID/ARP Special Enrollment Period this year purchased plans for less than $10/month! So it is definitely worth it to take a look and see if you are eligible for a subsidy; an EZ agent can check for you at no cost. It can be confusing trying to figure out what you qualify for, but we can help you every step of the way.

If You Don’t Qualify…

You can still save money! There are still ways for you to save money when purchasing a health insurance plan, by working with a licensed and trained EZ agent: we know all the ins and outs of finding people affordable insurance that works for them. For example, did you know that if you are under 30, or if you qualify for a hardship exemption, you can get a catastrophic plan? These plans are ACA-compliant, and have high-deductibles, but low monthly premiums. They are generally for healthy people who do not foresee ever meeting their deductible because they are in good health.

But what if you are over 30 or don’t qualify for a hardship exemption, or have health issues and need a more comprehensive health plan? Well, you can still save money! EZ can help you because we offer a wide range of health insurance plans from top-rated insurance companies in every state. Because we work with so many companies and can offer all of the plans available in your area, we can help you enroll in a plan that saves you a lot of money – even hundreds of dollars – even if you don’t qualify for a subsidy. There is no obligation, or hassle, just free quotes on all available plans in your area. To get free instant quotes, simply enter your zip code in the bar above, or to speak to a local agent, call 888-350-1890.

Find Out If You Qualify For Health Insurance Subsidies With EZ

President Biden recently signed the American Rescue Plan Act (ARPA) into law, which expanded access to health insurance subsidies to more Americans. These expanded subsidies, which became available on April 1, 2021, are making premiums more affordable to millions of people, saving many hundreds of dollars a year. Eligibility, though, depends on your income, so you might be confused about whether you qualify. That’s where EZ can help! We can help you determine if you qualify for any subsidies, and if you don’t, we can still help you find an affordable health insurance plan.

different money bills rolled up — *A subsidy is financial assistance that helps you pay for health insurance.*

What Is A Subsidy?

In general, a subsidy is financial assistance that helps you pay for something – in this case, for your health insurance premiums. The subsidies now available to more people through the ARPA are known as Advanced Premium Tax Credits; these are basically tax credits that you can take in advance to lower your monthly health insurance payments. Subsidies available to you depend on your family size, how much health insurance costs where you live, and how your income compares to the Federal Poverty Level.

The New Subsidies

The ARPA has extended Affordable Care Act (ACA) premium subsidies to higher-income people who did not previously qualify for them, and increased subsidies for lower-income people. The Biden administration estimates that an additional 3.6 million uninsured people are newly eligible for ACA subsidies under the ARPA, and that, on average, premiums will decrease about $50 a month, with some people paying $0 and some families saving as much as $1,000 a month! Because of the ARPA:

People whose income is above 400% of the Federal Poverty Level are now eligible for premium tax credits for the first time ever. They can access these premium tax credits if their premiums exceed 8.5% of their overall household income.
Individuals whose income is between 100 and 400% the Federal Poverty Level will receive higher subsidies.

So, to know how much you can save on your premiums, you’ll need to know where you fall on the Federal Poverty Line. If you’re not sure, EZ will figure that out for you, and then let you know what kind of subsidies you can expect to receive – you could save anywhere from $200 to $1,000 a month on premiums, and we’ll help you save more if possible. We will compare plans from different insurance companies to find a plan that meets your needs and saves you as much money as possible!

Working With An EZ Agent

We understand that you want to save money, especially in today’s economy. With the new ARPA, you might qualify for subsidies that you didn’t know were available to you, or you could even have been missing out on other savings or subsidies under the ACA. It can be confusing trying to figure out what you qualify for, but we can help you every step of the way. We will go over all your information and sift through plans to find the ones with the most savings- whether you qualify for subsidies or not. We work with the top-rated insurance companies in the country, and we are able to compare plans in minutes; not only that, but we offer our services for free! To get free instant quotes and guidance, simply enter your zip code in the bar above, or to speak to one of our local licensed agents, call 888-350-1890.

Biden’s Plan Making Health Insurance More Affordable for Millions of Americans

President Biden’s American Rescue Plan Act, a $1.9 trillion COVID relief package, was signed into law on March 11, and Americans have already started receiving their stimulus checks. But that is not the only benefit Americans are going to receive from the American Rescue Plan Act. The law includes a provision to expand healthcare coverage and lower healthcare costs by boosting subsidies for Affordable Care Act (ACA) plans. The new lower-priced insurance plans will be accessible to Americans starting on April 1.

The Cost of Insurance Is Too High For Many

The ACA has been going strong since 2010, providing access to quality health insurance for millions of Americans. However, many Americans earning over the income limit required to qualify for a subsidized plan are still finding health insurance too expensive, and have been opting out of purchasing plans.“There has been considerable discussion over the fact that while the ACA clearly increased affordability of and access to insurance coverage for millions of people, many people still find the premiums and out-of-pocket costs they face to be high and sometimes too burdensome,” says Linda Blumberg, a health economist at The Urban Institute, a Washington, D.C.-based nonprofit social and economic research organization. With the American Rescue Plan Act, the Biden Administration hopes to change all of this by making more people eligible for subsidies.

The Subsidies Broken Down

Before this new law, you could only qualify for a subsidized health insurance plan if your modified adjusted gross income was between 100% and 400% of the federal poverty level. For 2021, that’s between $12,760 (100% of the federal poverty level) and $51,040 (400% of the federal poverty level), for an individual. So before the American Rescue Plan Act, if you earned above those amounts, you would have to pay full price for a Marketplace health insurance plan.

But the American Rescue Plan Act allows those who earn over 400% of the federal poverty level to receive subsidies to purchase health insurance through the ACA Marketplace. It also requires that Americans pay no more than 8.5% of their income on health insurance premiums, and provides a larger tax credit to people who already receive financial assistance.

Cheaper Premiums

money bills laying on top of each other — *Biden’s new plan will reduce health insurance costs for millions of Americans, helping them save more.*

The Biden administration estimates that ACA premiums will decrease by about $50 per month. One administration official emphasized that 4 out of 5 people enrolling “will be able to purchase a plan for $10 or less per month.” This could make a huge difference in the lives of the 14.9 million people who are currently not insured in the U.S.

With the new law:

An individual making $19,000 or less will not have to pay a monthly premium for health insurance.
Couples who earn more than $70,000 together will save $1,000 per month on their health insurance monthly premiums.
A family of 4 with an income of $90,000 will pay about $200 less in health insurance premiums.

Anyone buying their own health insurance through the ACA Marketplace will be able to receive the tax credits beginning April 1. Comparing plans is the best way to find an affordable plan that provides the right level of coverage for you. Before you start doing the work of comparing on your own, come to EZ. We will make the process quicker and easier by comparing available plans in your area in minutes. Our licensed agents work with all the top-rated insurance companies in the nation and can go over your budget and needs, and find the best plan for you and your family. We compare plans and offer guidance at no cost to you. To get free quotes, simply enter your zip code in the bar above, or to speak directly with an agent, call 888-350-1890.

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