What Does Your Employers Plan Mean For Your Subsidies?

For most, health insurance options through your workplace are good news. If, however, you had plans to secure subsidies to help you pay for an individual health plan outside of your work, your employer’s offer of coverage may be a problem for you. Make sure you do not opt out of health care through your work only to find yourself without tax credit.

How does qualification for health care subsidies work? According to the Affordable Care Act (ACA), anyone who is at an income level of 400% or less of the federal poverty levels can qualify for tax credits to help them cover the cost of health insurance. These subsidies are available in your specific state and can be applied for during the open enrollment period, which ends February 15th.

If, however, you work somewhere that offers affordable health insurance and you choose not to accept a plan through your workplace, you will not qualify for subsidies. The same is true if you are eligible for coverage through Medicare. The government is committed to helping every American get the health care he or she needs, but if you choose to opt out of perfectly good coverage there will be no aid for you. That is because your job-based plan counts as the now federally mandated minimum essential coverage. Securing a plan through your workplace will also help you avoid the tax penalties that could be assessed if you do not have coverage.

To understand how your employer’s coverage affects your subsidy eligibility and what to do if you want a plan other than the one offered through your workplace, do not hesitate to contact Bernardini & Donovan Insurance Services today. Located in Redlands, we are here to help you secure the best protection for you and your family today. Connect with a certified agent; call us today!

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