According to a new Kaiser Family Foundation analysis, Americans who currently buy their own insurance through the individual market would receive tax credits averaging nearly $2,700 next year for coverage purchased through new insurance marketplaces. The tax credits or subsidies would be an average of 32 percent of the premiums for this group of enrollees in “silver” plan.
These rate announcements do not reflect federal subsidies that will offset the cost of insurance for many current individual market policy holders.
“Tax subsidies are an essential part of the equation for many people who buy insurance through the new marketplaces next year,” Foundation President and CEO Drew Altman said. “They will help make coverage more affordable for low- and middle-income people.”
Tax credits will be available to subsidize premiums for people who buy their insurance in the new marketplaces, do not have access to other affordable coverage, and have incomes between 100% and 400% of the federal poverty level (between about $11,500 and $46,000 for a single person, and $24,000 and $94,000 for a family of four).
An estimated 48% of people who currently have individual market coverage will be eligible for tax credits. Tax credits among those eligible will average $5,548 per family, and subsidies will average $2,672 across all families now purchasing their own insurance. Many people who are now uninsured will also be eligible for subsidies and their tax credits will likely be higher on average since they have lower incomes than those who now buy their own coverage.
For more information on the tax rates specific to your needs call Jeremy at (310)486-7625.