Individuals enrolled through the Marketplace may be eligible for a Advance Premium Tax Credit and Cost-sharing reductions.
Advance Premium Tax Credit:
When you buy health insurance coverage in the Marketplace, you may be able to get a premium tax credit that lowers what you pay in monthly premiums. This will depend on your household size and income.
When you apply for coverage in the Marketplace, you'll learn if you’re eligible for savings on out-of-pocket costs. Whether you qualify to save on out-of-pocket costs will depend on your household size and income.
- - Out-of-pocket savings apply only to Silver plans.
When you enroll in coverage through the Marketplace, you may be able to save money on out-of-pocket costs, including deductibles, copayments, and coinsurance. This is sometimes called “cost-sharing reductions.” The Marketplace cost-sharing reduction lowers the amount you have to pay for out-of-pocket costs like deductibles, coinsurance, and copayments.
How to estimate your income
For most people, you can use your household’s adjusted gross income for this estimate. If you know your adjusted gross income this year, use that and take into account any changes you expect next year.
Estimate your income for the people in your household, based on what you think you’ll receive next year:
Wages - Salaries - Tips - Net income from any self-employment or business - Unemployment compensation - Social Security payments
In addition, Rental income - Interest - Dividends - Capital gains - Annuities - Alimony - and some Retirement and Pensions
When you fill out the Marketplace application, a number called “modified adjusted gross income” (MAGI) will be used to determine your eligibility for lower costs on Marketplace coverage, and for Medicaid and the Children’s Health Insurance Program (CHIP). Generally, your household’s adjusted gross income plus any tax-exempt Social Security, interest, and foreign income you have. This will be determined when you apply through the Marketplace or your state agency. For Medicaid, it also matters if you’ve had a change in household income since your last tax return. When you apply you’ll need to tell them your household income now and estimate the amount for next year earnings, taking into account changes that you know about. Source: healthcare.gov.