Lets talk about health insurance for a moment, specifically regarding coverage through the Health Insurance Marketplace. After someone puts in an application, they will find out if they qualify for what is referred to as a “premium tax credit”, that lowers one’s premium (the amount payed each month for coverage).
Qualification is based on the household income, so in general, higher-income individuals and families will likely not be able to get assistance and have to pay the full cost of the plan. In Texas for 2019, an individual can not make less than $12,140 in a year and no more than $48,560 in a year. For 2 people in a household, the numbers are no less than $16,460 in a year and no more than $65,840 in a year. If someone makes very little money or is unemployed, the Health Insurance Marketplace advises to apply for your state’s Medicaid program. To calculate your household income, click here.
One can choose to allocate some or all of the “premium tax credit” toward their monthly insurance premium payment, its your choice. Income can affect the amount of help you receive, so for instance if your income goes up, beyond the stated amount when applied, your “premium tax credit” will be reduced and you can end up paying more per month for the plan. Vice versa if it goes down.
One crucial element is that if at the end of the year you take have utilized more advance payments of the “premium tax credit” than you were eligible for, you may have to pay back money to Uncle Sam come tax season. This is referred to as “reconciling” and more information can be found here.
We hope you found this information on health insurance helpful. Here at the Harrin Group, we are big believers in the value of knowledge and want you to be fully aware of what exists today in health insurance. Give us a call today if we can help you apply for health coverage and check out our “Health Insurance 101” page fore more in-depth information here.