While the medical practice has much developed in the past few decades, and the staff that is working in this area is very well educated, it still seems that the USA health system is lacking something. Oh yes, it seems that it system itself is broke in a way and mainly due to expensive health insurance plans and health care treatments. With this in mind, it is hard for a low or an average-income patient to perform regular health check-ups or go through treatment for a specific condition. Still, it is not like nobody is trying to make things better – in fact, Barack Obama started implementing a Patient Protection and Affordable Care Act during 2010, and it resulted in the so-called Obamacare.
Many people think that the sole goal of Obamacare is to lower the health insurance price but that is wrong as it includes a much bigger picture and the idea of lowering health care expenses in general. And while it was initially designed to help the poor, during the past few years over 50% of the Obamacare subsidies went to the middle-class. Still, there is a good reason why – they are not eligible for Medicaid (making above their requirements) while they are still not making enough to afford a private insurance plan. Obamacare came out with a plan to spend more than 1 trillion USD from 2015 to 2024 providing subsidies for those in need.
But are you eligible for a subsidy and how to apply? Without further ado, let’s go ahead and take a look.
Know The Income Limits
Before moving on and telling you how to apply for a subsidy you need to know the income limits that make you eligible for such. Our best recommendation is to go ahead and check the Obamacare income limits 2019 chart.
There is a recommended minimum and maximum of income that will put you in the frame for an Obamacare subsidy. All the cases below that will be handled by Medicaid, and everyone above is thought as having enough to afford private health insurance. If you are a family of two the minimum income for 2020 has to be $16,460 while the maximum should be at $65,840. For a family of four, it is somewhat difference and the minimum income should be around the $25,100 mark while the maximum is $100,400. Now, if your family is really big and there are 8 members the minimum income will be $42,380 while the maximum stands at $169,520. If you are not sure how to calculate your income and know if you are eligible for an Obamacare subsidy plan we recommend that you use some of the subsidy calculators offered on online.
What Are The Subsidy Plans
Now, there are a few Obamacare subsidy plans but all have the same goal – to provide you with free preventive care, cheap healthcare, and that the costs in total can be no more than 9.5% of your annual income. First and foremost, there is the Bronze plan in which you will be paying 40% of your healthcare expenses, while a subsidy will cover more than 60%. With a silver plan, you are paying 30%, with the plan covering 70%, and the deductibles being around $2000-4000. The gold offers 80% of expenses covered, while there is a much lower deductible. Last but not least if you are eligible for a Platinum plan 90% of your expenses will be covered, with almost no deductible.
How To Get A Subsidy
Once you prove you are in the income range for an Obamacare subsidy you will get it as a part of an income tax refund. What this means is that if you are not paying your taxes, there is no way to get a subsidy either. An increase in the income will increase your taxes, and lower the subsidy.
Obamacare stands with a great idea, but with the number of people living in the USA isn’t easy to implement the same. Still, the existing income rates for eligible subsidies make things more transparent – if you are within the range, go ahead and apply for the plan!