As many people already know, under the Affordable Care Act individuals and families who make less than certain threshold levels will be entitled to receive a subsidy to offset the cost of their health care insurance. However, there is no “phase out” of the subsidy. If you make even one dollar more than the allowable amount, you lose the entire subsidy. This is important to know for all people who have some control over their incomes, either through reducing overtime or, if you are an independent contractor working fewer hours so you come in under the limit. For a single person the income limit to receive a subsidy is $45,960 per year, for a couple it’s $62,040 and for a family of four it’s $94,200.
So, for example, if you are a married couple purchasing a mid-range “silver” insurance plan costing approximately $9,346, you can receive a subsidy worth $3,452 if your annual income is $62,040 or less. But at $62,041 that same couple receives no subsidy. Clearly, it will become very important to watch how much you work and earn if you find yourself in this situation.
Sorry, comments are closed for this post.