How Do Obamacare Rates Change Based on Your Income?


Quick Answer

The federal government offers premium tax credits that effectively lower the monthly cost of health insurance for individuals and families who make up to 400 percent of the federal poverty line, according to Zane Benefits. In 2014, Obamacare capped the amount spent on premiums to 9.56 percent of the total annual income of people who made three to four times the poverty line and 6.34 percent for people who made 200 percent of the poverty line.

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Full Answer

A family of four can make up to $95,400 per year and still qualify for a premium tax credit instituted by the Affordable Care Act that would reduce their premiums, notes Zane Benefits. A single person who makes up to $46,680 also qualifies for a tax credit.

In addition to premium tax credits, cost-sharing subsidies make health care more affordable for people who make 250 percent or less of the federal poverty line, explains Kaiser Health News. For example, a family with a silver health plan, which covers 70 percent of expenses, is responsible for 30 percent of their health care costs. However, a family of four who makes only 100 to 150 percent of the federal poverty line only has to pay 6 percent, instead of the initial 30 percent. Families with income in the 150 to 200 percent range pay 13 percent, and families in the 200 to 250 percent range pay 27 percent. There is also an overall spending cap that ranges from $2,250 to $10,400 per year depending on income level and family size.

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