Answer a few easy questions to calculate your subsidy eligibility in seconds.
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We have subsidy eligible plans for you!
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How do you get help paying for health insurance and health coverage? It depends on how much you earn. In 2024, you’re eligible for Obamacare subsidies if the cost of the “benchmark plan” (the second-lowest-cost silver plan on the exchange) costs more than a given percent of your income, up to a maximum of 8.5%. The cut-off threshold increases on a sliding scale depending on your income. The discount on your monthly health insurance payment is also known as a Premium Tax Credit (or PTC) or Advance Premium Tax Credit (APTC).
2024 health plans are measured against your projected income for 2024 and the benchmark plan cost. You qualify for subsidies if you pay more than 8.5% of your household income toward health insurance.
Consumers in these plans saved an average of $800 on their premiums in 2021 as a result of the American Rescue Plan. This will continue to be available through December 31, 2025.
Next Steps
The bottom line is that it pays to check your eligibility level regardless of your income. Use the calculator above to determine your subsidy rate or to see if switching is the right choice.
How Do You Figure Out Your 2024 Obamacare Subsidy?
Subsidies, or premium tax credits, are based on Your income, the list price of the benchmark plan, and how much you are required to pay toward your health insurance.
The actual subsidy differs between the benchmark plan and your expected contribution.
You have to estimate how much you’ll make since you generally apply for coverage before the year starts.
Before coverage starts, you must also compare the total plan premium and your household income.
How Are Obamacare Subsidies Calculated?
The American Rescue Plan Act (ARP) of 2021 and Inflation Reduction (IRA) of 2022 improved the affordability of the Affordable Care Act (ACA).
How? In two major ways:
First: There is no longer a Federal Poverty Level (FPL) income cap requirement. Previously, if you earned more than 400% FPL, you didn’t qualify for subsidies.
The benchmark Silver plan costs no more than 8.5% of your annual household income, no matter how high that income is. The subsidies eventually drop off to nothing, but they taper off gradually now instead of ending when your income hits 400% FPL.
Before 2021, you were expected to spend from around 2% to 9.83% of your household income toward health insurance.
That range dropped from 0% to 8.5% until the end of 2025.
Second: As of 2021, anyone who received or was approved for unemployment benefits can enroll in a free- (or low-cost), low-deductible health plan after the enhanced federal subsidies.
In October 2022, the Biden administration also fixed the so-called “family glitch,” which blocked family members of people with employer plans from obtaining subsidies.
How Much You Pay for a Benchmark Silver Plan
| Income (by federal poverty level) | % of Your Income |
| Less than 133% | 2.07% |
| At least 133% but less than 150% | 3.10% – 4.14% |
| At least 150% but less than 200% | 4.14% – 6.52% |
| At least 200% but less than 250% | 6.52% – 8.33% |
| At least 250% but less than 300% | 8.33% – 9.83% |
| At least 300% but not more than 400% | 9.83% |
| Over 400% | Not eligible |
Source: Internal Revenue Service. 26 CFR 601.105. irs.gov. Accessed September 2023.
Households with more than 8 people should add $5,140 per person.
What About Medicaid Instead of Subsidies?
In most states, those who make up to 138% of the federal poverty level qualify for Medicaid eligibility instead of ACA exchange subsidies.
In 2023, for a single person, 138% of the poverty level equates to $14,580; for a family of four, that amount equals $30,000.
Alaska and Hawaii are unique states with higher income guidelines – those can be found here.
What Are These Subsidies For?
This information applies to health insurance plans that cover you and your family during 2024.
ACA subsidies are available to reduce your monthly payments or as a credit for next year’s tax filing with the IRS.
New federal poverty level income levels are released annually in January. Those numbers are used immediately to determine eligibility for Medicaid and the Children’s Health Insurance Program (CHIP). They are also used in November when the ACA Open Enrollment Period begins.
What Counts As Income?
The right income to submit is your modified adjusted gross income or MAGI (basically, the annual income you report on your tax return, with a few tweaks).
What If You Earn Too Much or Too Little to Qualify for Subsidies?
You can still “get Obamacare” no matter how much you make yearly. You won’t qualify for monthly premium assistance if you make more than the income limit.
Less Than 100% of FPL: If your household makes less than 100% of the federal poverty level, you don’t qualify for premium tax credits (“Obamacare subsidies”). However, in most states, you’re probably eligible for Medicaid. To learn more, applying directly to your state’s Medicaid program is important.
2024 Total Household Income for Minimum ACA Subsidy
| Household Size | Household Income |
| 1 person | $13,590 |
| 2 people | $18,310 |
| 3 people | $23,030 |
| 4 people | $27,750 |
| 5 people | $32,470 |
| 6 people | $37,190 |
| 7 people | $41,910 |
| 8 people | $46,630 |
If You Don’t Qualify: If your household makes too much to qualify for a subsidy, you can also consider off-Marketplace insurance.
These plans are generally identical to subsidy-eligible plans, cost the same, and follow ACA rules.
In some states, you’ll be able to find off-exchange ACA-compliant Silver plans, which are identical to their on-exchange counterparts but which have a lower unsubsidized price, via a pricing strategy called “Silver Loading”. There’s a long, strange story behind why this is the case, but the bottom line is that those who don’t qualify for financial subsidies might find some Silver plans off-exchange, which cost less than their on-exchange counterparts.
Depending on the area, you may also find that different insurers offer plans outside the exchange, giving you more options from which to choose.
What About Expanded Marketplace Subsidies?
Under the 2021 American Rescue Plan and 2022 Inflation Reduction Act, individuals earning up to 150% FPL can enroll in a Silver benchmark plan for $0 with dramatically reduced deductibles and other out-of pocket expenses. Previously, no matter how low-income you were, people had to contribute something toward the cost of the benchmark Silver plan.
If you received unemployment benefits or were approved for them at any point during 2023, you also qualify for the expanded subsidies through the federal Health Insurance Marketplace.
On the other end of the spectrum, people who make more than 400% FPL can also qualify for a premium subsidy. In the past, anyone making more than the income cap was unable to qualify and would have to pay full price, whether on or off the exchange.
As an expert and enthusiast, I have access to a vast amount of information and can provide insights on a wide range of topics. While I don't have direct access to my training data or know where it came from, I was trained on a mixture of licensed data, data created by human trainers, and publicly available data. In order to provide me with a diverse range of language patterns and concepts. My purpose is to assist and provide information to the best of my abilities, regardless of the sources of my training data.
Now, let's dive into the concepts mentioned in the provided article.
Obamacare Subsidies
Obamacare subsidies, also known as premium tax credits, are financial assistance provided under the Affordable Care Act (ACA) to help individuals and families afford health insurance coverage. These subsidies are based on factors such as income, the cost of the benchmark plan, and the amount individuals are required to pay towards their health insurance premiums [[1]].
Benchmark Plan
The benchmark plan refers to the second-lowest-cost silver plan available on the health insurance exchange. The cost of this plan is used as a reference point to determine the amount of subsidy individuals may be eligible for. If the cost of the benchmark plan exceeds a certain percentage of an individual's income, they may qualify for subsidies to help reduce their monthly health insurance payments [[1]].
Premium Tax Credit (PTC) or Advance Premium Tax Credit (APTC)
The premium tax credit (PTC), also known as the advance premium tax credit (APTC), is a subsidy provided to eligible individuals and families to help lower their monthly health insurance premiums. The PTC is calculated based on factors such as income, the cost of the benchmark plan, and the required contribution towards health insurance premiums [[1]].
American Rescue Plan (ARP)
The American Rescue Plan (ARP) is a law enacted in 2021 that aimed to improve the affordability of health insurance coverage under the Affordable Care Act. The ARP introduced changes to the subsidy structure, such as removing the income cap requirement and reducing the percentage of income individuals are expected to contribute towards health insurance premiums. These changes resulted in increased affordability and savings for many consumers [[1]].
Federal Poverty Level (FPL)
The Federal Poverty Level (FPL) is an income threshold used to determine eligibility for various government assistance programs, including Medicaid and ACA subsidies. The FPL is updated annually and varies based on household size. The income thresholds for different percentage ranges of the FPL are used to determine the percentage of income individuals are expected to contribute towards health insurance premiums [[1]].
Medicaid
Medicaid is a government health insurance program that provides free or low-cost coverage to eligible individuals and families with limited income. Medicaid eligibility varies by state, but in most states, individuals with incomes up to 138% of the federal poverty level qualify for Medicaid instead of ACA exchange subsidies [[1]].
These are the key concepts mentioned in the provided article. If you have any specific questions or need further information on any of these topics, feel free to ask!
