As 2014 quickly approaches and the enactment of Obama Care, many low income families are becoming concerned about how they are going to pay for health insurance.
Take Los Angeles as an example. It is estimated that at least 20 percent of the population is living below the poverty level. In a city of several million people, that is a considerable number of people who will not be able to afford health care for themselves, or their family.
What are lower income people going to do?
There is good news. People with low to medium incomes may qualify for federal subsidies to help offset monthly premiums and deductibles. Anyone earning 400% of the poverty line will be eligible for a subsidy which is up to $45,960 for an individual and $94,200 for a family of four.
The Kaiser Family Foundation estimates that 48% of Americans who buy individual insurance today would be eligible for subsidies. They would receive an average of $5,540, which would cover 66% of the price.
Though premiums will vary significantly across the country, right now it is estimated that a 25 year old making 25k a year, will pay about $62 a month for health insurance.
Of course, the lower the income, the larger the subsidy for Obama Care. For instance, let’s take someone who makes about $17,235 a year. That individual will pay about 4% of their income, or $57a month. A person who makes between $34,470 and $45,960 will pay a maximum of 9.5% of their income, or $364 a month. The balance is covered by the federal government. Anyone who earns above $45,960 a month will pay the full premium.
There are various subsidies available at various income levels. When a person applies for Obama Care they can apply for an advance subsidy by estimating their income.
Call us and find out what subsidies you might be eligible for.