Dealing With The Insurance Changes

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Dealing with the Insurance Changes
Your prices for insurance coverage could be rising or falling, depending on your age, health and other factors. Smokers pay about 50% more for insurance than nonsmokers, so many families can realize savings by quitting the habit. The Employer and Individual Mandates for coverage affect about 15% of Americans who don 't have health insurance. If you qualify for a subsidy, you need to report your Premium Tax Credit on your taxes.

Gift of the MAGI
Tax credits based on a sliding scale can help your reduce your family 's health insurance costs to between 2.0% and 9.5% of your total household income. In order to figure whether you 're eligible for a credit and how much you qualify for, you must calculate your
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The Premium Tax Credit is refundable, so people with no tax liability can still claim the credit and receive a tax refund.
Premium credits can also be used in advance to reduce the costs of obtaining a qualified health insurance plan.
You can use the Health Insurance Market Calculator to estimate your eligibility for insurance subsidies and Medicaid benefits.

Ordinarily, tax credits are applied at tax time, but most low-income families don 't have enough cash to pay for their insurance and get reimbursed later. Therefore, the government sends the subsidies directly to insurance companies to reduce any premiums you pay during the year. If your income changes from what you estimated, you must pay back any difference on your tax forms.

Calculating Your Insurance Subsidy
The Affordable Care Act provides subsidies for even some middle-income families that might not expect to qualify. Calculated on your family 's income and its relationship to the Federal Poverty Level (FPL), the Premium Tax Credit caps how much your family needs to pay for the second-cheapest silver plan that’s available in your region.

Subsidies are only available to people who don 't receive insurance through their employers.
Although granted in the form of a tax credit, the subsidy can be used in advance to lower your premiums.
Based on a family of four, the FPL for 2015 is around $24,250.
Subsidies are available for families earning up to 400% of FPL or $130,280 for a family of six people.
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