Will you receive an Obamacare premium subsidy?
How the Obamacare subsidies are calculated
As of March 2016, there were 9.4 million people receiving premium subsidies through the exchanges. For enrollees across all 50 states and DC, those subsidies average $291 per month in 2016. That’s a significant portion of the $386 per month average premium (before subsidies) for people who get coverage through Healthcare.gov.
In short, the subsidies are a significant part of the “affordable” in Affordable Care Act. With each successive open enrollment period, awareness of the law’s premium tax credits (subsidies) continues to grow. But many Americans may still be wondering, “Am I eligible to receive a premium subsidy – and if so, what should I expect?”
Subsidies based on the cost of Silver plans
Middle-income and low-income people buying coverage in the exchanges are eligible for government subsidies that come in the form of tax credits. Most eligible enrollees take those tax credits in advance, paid directly to their health insurance carrier each month to offset the amount of premiums due.
Self Funded Group Health Insurance
Self-Insured Group Health Plans
Q. What is a self-insured health plan?
A. A self-insured group health plan (or a 'self-funded' plan as it is also called) is one in which the employer assumes the financial risk for providing health care benefits to its employees. In practical terms, self-insured employers pay for each out of pocket claim as they are incurred instead of paying a fixed premium to an insurance carrier, which is known as a fully-insured plan. Typically, a self-insured employer will set up a special trust fund to earmark money (corporate and employee contributions) to pay incurred claims.
Q. How many people receive coverage through self-insured health plans?
The Obamacare Penalty
The Affordable Care Act (ACA) removed obstacles that prevented some people from buying health insurance — but not everyone has signed up, and not everyone who did sign up kept their coverage. Because of that, millions will owe the individual shared responsibility payment, better known as the Obamacare penalty or ACA penalty, when they file taxes.
Who pays the Obamacare penalty
The ACA’s individual mandate requires everyone in the U.S. to have health insurance, unless you qualify for an exemption. If you didn’t qualify, and went without “essential health benefits” for more than three months in 2016, you’ll have to pay a penalty on your coming tax return.