The income amounts to get 2021 Obamacare subsidies are based on – but higher than – last year’s federal poverty level (FPL). These discounts on your monthly health insurance payment are also known as premium tax credits.
What’s the Minimum Income for 2021 Obamacare Subsidies?
To get Obamacare subsidies in 2021, your household must earn (in 2021) at least 100% of the 2020 federal poverty level. Subsidy eligibility is based on your income for the year you’re going to have coverage.
What does that mean? You have to project how much you’ll make in advance since you generally apply for coverage before the year starts.
But it’s compared with the poverty level guidelines from the year before the coverage starts.
Why? There are two reasons:
- Open enrollment takes place before the start of each year.
- Federal poverty level numbers for each year aren’t published until open enrollment for that year’s coverage has already ended.
What You Need to Know
Subsidy eligibility is based on your income for the year you’re going to have coverage.
You qualify for federal aid for 2021 if you make one to four times the 2020 federal poverty level for your household size. For a family of four, that range is from $26,200 to $104,800.
You don’t qualify for federal aid for 2021 if you make more than four times the 2020 federal poverty level for your household size. For a couple that amount is $68,960.Households with more than 8 people should add $4,480 per person.
In most states, those who make under 139% of the federal poverty level are offered Medicaid instead of subsidies. So for a single person, that amounts to $17,73.64; for a family of four, that amount equals $36,418.00
What’s the Maximum Income for 2021 Obamacare Subsidies?
To get Obamacare subsidies, your household cannot make more than 400% of the federal poverty level. The cutoff amounts for 2021 plans are below.
2021 Total Household Income for Maximum ACA Subsidy
What Year Are These Subsidies For?
This information – and these household income amounts – apply to health insurance plans that cover you and your family during 2021.
Affordable Care Act subsidies are still available, despite the ongoing debate over the law in Washington.
New federal poverty level income levels are released annually in January. Those numbers are used immediately to determine Medicaid and CHIP eligibility, and in November, when open enrollment begins, they’ll be used to determine eligibility for premium subsidies for the coming year.
What Counts As Income?
The right income to submit is your modified adjusted gross income (basically, the income you report on your tax return, with a few tweaks).
What If You Earn Too Much or Too Little to Qualify for Subsidies?
You can still “get Obamacare” no matter how much you make per year. You simply won’t be eligible for monthly premium discounts if your income is out of the subsidy range.
Minimum and maximum levels change every year, based on how the poverty level numbers change.
For example, a household of four had to earn no more than $94,200 to qualify for premium subsidies in 2014, whereas a household of four will be able to earn up to $104,800 in 2021 and still qualify for subsidies.
Less Than 100% of FPL: If your household makes less than 100% of the federal poverty level, you don’t qualify for premium tax credits (“Obamacare subsidies”). For a family of three, this amount is less than $21,720.
However, you’re probably eligible for Medicaid, depending on your state’s rules. To learn more, it’s important to apply directly to your state’s Medicaid program.
More Than 400% of FPL: If your household makes more than 400% of the federal poverty level, you can also consider off-Marketplace insurance on sites Independent Health Agents. For a couple, this amount exceeds $68,960.
These plans are generally identical to subsidy-eligible plans, generally cost the same, and follow ACA rules. But depending on the area, you may find that different insurers offer plans outside the exchange, giving you more options from which to choose.