What is a Subsidy?

A subsidy is financial assistance that helps you pay for something. It’s not a loan; you don’t pay it back. There will be two kinds of subsidies available from the federal government for individual health insurance plans.

• The Advanced Premium Tax Credit lowers your monthly health insurance payment, or premium.
• Cost Sharing Reduction reduces your out-of-pocket maximum. This amount is the most you’ll have to pay during a policy period (usually a year) for health care services you receive and includes your deductible, coinsurance and copays.

When you buy your 2018 health plan, applying for a subsidy will be part of the process.

Can you get a subsidy?

It depends on:

• How your income compares to the Federal Poverty Level
• Your family size
• How much health insurance costs where you live

The main factor is your income. You can qualify for a subsidy if you make up to four times the Federal Poverty Level. That’s about $46,000 for an individual and $94,000 for a family of four. If you’re an individual who makes less than $29,000 or a family of four that makes $59,000, you may qualify for both subsidies.

Sound complicated? We make it easy with our subsidy estimator. It only takes a few minutes to find out if you’re eligible.