Health Reform Subsidy: 3 Things to Know, From Insurance Medics

FORT LAUDERDALE, Fla., Sept. 25, 2013 (GLOBE NEWSWIRE) -- As individuals start shopping for their health insurance coverage via state and federal exchanges on October 1st, one of the Affordable Care Act's most controversial and confusing aspects will kick in: the subsidy. A subsidy is really a tax credit which is used to help pay for all or a portion of your health premiums. The following are three things to understand about qualifying for a tax credit.

  1. The income used for qualifying for a tax credit is called your "Modified Adjusted Gross Income" which is basically your "Adjusted Gross Income" (Income minus deductions, etc.) plus certain nontaxable income like social security and tax exempt interest. Look through last year's tax return or ask your tax preparer for these numbers before shopping.
  2. Know your income and what you project it will be for next year. Subsidies will be based on what you estimate your income will be in 2014. For example, if you are on a fixed salary for 2013 and nothing has changed, you are most likely going to have the same income for 2014. It will get reconciled when you file your 2014 taxes, so you want to be as accurate as you can with your estimated income.
  3. It's important to know how much of a tax credit you are eligible for. In order to qualify for a subsidy, the income for a family of four must be between $23,550 and $94,200. Such as Jane and her family. Jane and her husband Ron live in Broward County, Florida and make $62,000 per year. Jane and the family will qualify for a $546 monthly credit from the government. It can be paid in a lump in the following year on your tax refund or taken as an advance and paid directly to the health insurance company of your choice.

Shopping for health insurance can be a confusing and daunting to begin with; now, throw in subsidies and income, things can get very intimidating. It doesn't have to be. Know your stuff. Do research, prepare yourself, and get the maximum tax credit you are eligible for. Speak to an insurance broker or agent for assistance and/or visit See if you qualify for a subsidy or tax credit by visiting

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Source: Insurance Medics