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What’s Up With All This Free Money?

I was reading this article today and realizing how confusing it can be to sort through the different types of subsidies you might be eligible for through different plans. After about a half hour of Q & A at Navinsure headquarters, we’ve come up with some simple differentiators to help you navigate these differences.

The Silver plans are the most relevant to this issue right now, so that’ll be the focus here.

 

There is something called a Cost Sharing Reduction (henceforth CSR) that this article focuses on. Here’s a basic layout of the specifics:

-Applies only to those who choose Silver Plans

-Eligibility occurs when your income is below 250% of the Federal Poverty Level (FPL), or below $29,400 for an individual

-Is separate from and supplemental to your tax credit

-With the use of your CSR subsidy, typical consumers end up paying the same as they would for a Bronze Plan, but with more coverage

 

The typical health insurance tax credit has somewhat similar benefits, but it’s different. Here’s how it compares:

-Applies to any metallic level of plan, though the credit amount is calculated based on the second cheapest Silver plan (this was where I got confused, hopefully this differentiation helps)

-Eligibility occurs when your income is below up to 400% of the FPL, or $46,680 for individuals.

This chart from healthcare.gov outlines the different ranges of income eligible based on the number of people in your household.

 

For each form of subsidy, the amount of assistance you receive goes down as your income moves up and closer to these different markers.

Let me know if this is still confusing!

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