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Are You Eligible for a Subsidy?

Are You Eligible for a Subsidy?Depending on household income levels, you may be eligible for federal subsidies that immediately reduce your monthly health insurance premiums.

The Federal subsidies are Advance Premium Tax Credits and are NOT available to people eligible for Medicaid or Medicare or who have affordable coverage through an employer.

The Advance Premium Tax Credits are based on (1) the size of your household and (2) your household’s estimated income.

1. Determine Size of Your Household

DO Include DON’T Include
  • Yourself
  • Your spouse or unmarried partner who needs health coverage
  • Your children who live with you, even if they make enough money to file a tax return themselves
  • Anyone you include on your tax return as a dependent, even if they don’t live with you
  • Anyone else under 21 who you take care of and lives with you
  • Your unmarried partner who doesn’t need health coverage and is not your dependent
  • Your unmarried partner’s children, if they are not your dependents
  • Your parents who live with you, but file their own tax return and are not your dependents
  • Other relatives who file their own tax return and are not your dependents. See IRS rules on dependent qualification.

2. Estimate Your Household Income

Household income includes the household income of the taxpayer & spouse, and dependents if the dependents earned enough to file a tax return.  Married couples MUST file jointly in order to get a Advance Premium Tax Credit.

To estimate your household income, add the total income from the sources below for (1) you and your spouse and (2) any dependents who make enough money to be required to file a tax return:

DO Include: Wages, Salaries & Tips, Net income from self-employment or business, Unemployment compensation, Alimony, Social Security payments, including disability payments, Income from investments, retirement, pensions & rental income, Other taxable income such as prizes, awards, and gambling winnings.

DON’T Include: Child support, Gifts, Supplemental Security Income (SSI), Veterans’ disability payments, Workers’ compensation.

Keep in mind that federal subsidies are Advance Premium Tax Credits based upon your household’s Modified Adjusted Gross Income.  The tax credits will be reconciled when you file your federal income taxes, so try to be as accurate as possible.   Significant mid-year changes in income should be reported to the exchange’s customer service department.

Use the chart below to see if you’re eligible for Health First Colorado or CHP+. If your family’s monthly gross income is above the levels in step 2, then go to step 3 below and use your family’s estimated income for 2020 to see if you’re eligible for federal tax credits.

 

Get free professional assistance and quotes on all the plans both through Connect for Health Colorado and directly from insurance carriers.

Note that even if you do not qualify for financial help, you can still purchase a Qualified Health Plan (QHP), which is simply an Affordable Care Act compliant health insurance plan.  Advance Premium Tax Credits are not available to people eligible for Medicaid or Medicare or who have affordable coverage through an employer.

Get a quote and more information about ObamaCare plans in Colorado.

You can also use the subsidy calculator to give you a rough estimate.

Video instructions for PEAK application:

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