Calculator shows how much Obamacare subsidies will increase after coronavirus relief bill
by David Hogberg, Healthcare Reporter |
| March 13, 2021 12:48 PM For people who have health insurance via the Obamacare exchanges or are considering getting it, the American Rescue Plan Act increases the premium tax credits, also known as subsidies, to help pay for coverage.
But how much in premium tax credits will people qualify for?
To answer that, a good resource is the Kaiser Family Foundation’s Health Insurance Market Calculator. Enter a few details such as one's income, ZIP code, and age, and the Kaiser Family Foundation calculator will show the amount of the tax credit. For example, a 28-year-old single person making $30,000 annually in Los Angeles qualifies for a monthly tax credit of $214.
Understanding how the tax credit is calculated requires knowing two numbers. The first is the amount of income that Obamacare requires an individual to pay for a policy on the exchange. That same 28-year-old is required to pay 3.4% of his income, or $85 per month, toward a policy.
The second number is the price of the second-lowest-cost silver plan, also known as the benchmark plan, on the exchange. For that 28-year-old, the price is $299 per month. The tax credit ($214) is then calculated by subtracting the income amount, $85, from the price of the benchmark plan, $299.
The American Rescue Plan Act increased the tax credits by lowering the amount of income an individual or family must pay for a policy on the exchanges.
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https://www.washingtonexaminer.com/news/calculator-obamacare-subsidies-increase-covid
