Obamacare: subsidies offered under 400% of Federal Poverty

In order to qualify for any subsidies, what is the maximum adjustable income amount for 64 year old divorced woman?

Indiana Gal

Dear Indiana Gal,

You would qualify for subsidies from the exchange if your Modified Adjusted Gross Income is less than 400% of Federal Poverty.  For a household of one person, that would be $45,960.  The subsidies go up, as your income goes down.  (Note: you cannot get subsidies if you earn less than 133% of Federal Poverty.)  It also depends in part on which plan you choose.  The subsidy amount is based upon the “benchmark” plan.  If you choose a plan that is more expensive than the benchmark plan (which is the second lowest cost Silver plan), then you pay the difference between the subsidy amount and the total cost.

There are other rules about who can buy plans from the exchange and who gets subsidies.  For example, you cannot have a group plan offered to you (say from an employer).  You also have to be a U.S. citizen.  There are several more details, but I’m probably safe to assume that you will qualify for the exchange and the subsidies.  You will find out, in any case, when you go to the exchange to apply.

Update: Added reference to lack of subsidies for people earning less than 133% of Federal Poverty. 

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Linda Riddell

About Linda Riddell

A published author and health policy analyst with 25 years’ experience, Linda Riddell's goal is to alleviate the widespread ailment of not knowing what your health plan can do for you.