Lowering Your Health Insurance Costs

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Group Marketing ServicesLowering Your Health Insurance Costs

You May Get Help Paying for Health Insurance

When using a local broker, you may qualify for help with the cost of buying coverage by:

When you fill out your application on the marketplace through a broker, you'll find out what kind of assistance you qualify for.


Lowering your premiums through a premium tax credit

The Affordable Care Act provides a new tax credit, called the Advance Premium Tax Credit. This credit helps you afford health coverage bought through a health insurance marketplace.

This is how it works:

  • When you apply for health coverage on the marketplace, information you provide on your application about how much money you make, your family size and the type of plan you purchase will be used to see if you qualify for a tax credit to lower your monthly insurance premiums.
  • When you are comparing plans, the marketplace website will show you the amount of the tax credit and your lower monthly premium amount for each plan.
  • This credit can be applied directly to your monthly premium, so you get the lower cost immediately.

Changes to your family size, income or employment during the year can change the amount of your premium tax credit. You will need to report any changes through the marketplace website.

  • If the amount of advance credit payments you get for the year is less than the tax credit you're due at the end of the year, you'll get the difference as a refundable credit when you file your federal income tax return.
  • If your advance payments for the year are more than the amount of your credit, you must repay the excess advance payments with your tax return.

Qualifying for help with out-of-pocket costs

If you buy coverage on the health insurance marketplace through a broker, you may also be able to get lower out-of-pocket costs like your deductibles, copays and coinsurance. This is known as cost-sharing assistance, which will help with costs you have to pay when you get medical care, like when visiting a doctor or having a medical procedure, that aren't reimbursed by your health insurance plan.

When you apply for coverage on the marketplace, you'll find out if you qualify for reduced out-of-pocket costs. The amount of cost-sharing assistance you qualify for will depend on how much money you make, your family size and the type of plan you purchase.


Getting free or low-cost coverage through a government program

When applying for health coverage through a broker, it may be determined that you or a family member qualifies for a low-cost or free government program, such as Medicaid or the Children's Health Insurance Program (CHIP).

When you finish your application on the marketplace and it looks like you or a family member is eligible for Medicaid or CHIP, the proper government agency will be contacted so your health coverage can start right away.

If you choose to purchase a health insurance plan on the marketplace rather than enroll in one of these lower cost government programs, you will not be eligible to qualify for the premium tax credit or reduced out-of-pocket costs.

You may qualify for Medicaid or CHIP now.

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