What Your Options Are to Afford Health Insurance
Now that Americans are required to have health insurance or face paying a fine, many people are wondering just how they’re going to afford health insurance. After all, with all the regulations put into place on the industry, it doesn’t necessarily mean that the monthly premiums are going to be any less than if you had gotten your plan before Obamacare came into place. So what is someone with a lower income going to do?
This is where health insurance tax credits come in. Depending on your income/the total income of your family, you automatically qualify for tax credits that will help you pay your premiums. The tax credit depends on what state you live in as well as your income; for instance, a family of four earning less than $50,000 could earn over $10,000 in tax credit towards their health insurance premium. Again, it depends on what state you live in, what your total income is, and how many family members you have and are insuring. A single adult will earn significantly less, as well a married couple who have no children of their own or otherwise dependent individuals who would be claimed when filing their taxes.
Unlike many tax exemptions such as dependents and donations to charity, however, the tax credit for health insurance is automatically applied. So, rather than pay your entire premium throughout the year and get the money back on your tax return, you just don’t pay it. So, while the tax credit won’t pay for the entire premium, it can really lift the strain from those who need health insurance but can’t pay the high premiums. The tax credits apply only to those who don’t have insurance through their employers, however tax credits are also employed to companies to help cover premiums for employee health insurance.
In addition to the tax credits that lower income Americans automatically receive, individuals and families with a low enough income or disabilities who go to the health insurance exchange for their insurance shopping will automatically be enrolled in Medicaid. You can, in fact, have both Medicaid and regular insurance at the same time, and so even though you’re still paying for premiums on insurance, you’ll have that much more coverage and peace of mind when the time comes that you need to use it.
Always be sure to look into what your options are, and what the long-term results would be. Make sure you’re educated as you dive into the world of buying health insurance, so that you can get everything out of it you need, and maybe a little more.