The income limit for Obamacare 2022 helps you determine how much you should pay in premiums for the year. It is critical to estimate your income accurately, as failing to do so could mean not receiving all of your subsidy amounts as eligible.
Subsidies provided through ACA subsidies are the primary way that Obamacare helps people purchase affordable health insurance. These subsidies come in the form of advance premium tax credits and cost-sharing reductions which lower deductibles and copays.
Minimum Income
In 2022, a minimum income of $13,590 is necessary to qualify for Obamacare coverage. This number varies based on the number of people in your household and is adjusted annually to account for inflation.
The Affordable Care Act (ACA) created premium subsidies that help lower health insurance costs for many Americans. These credits are tax credits issued directly by the government and applied directly towards your monthly health insurance bill.
Most everyone who enrolls in a marketplace plan will receive premium subsidies, also referred to as Advance Premium Tax Credits or Cost-Sharing Reductions.
Subsidies are available immediately upon enrollment, providing families with the financial assistance they need when it’s needed most. They can be applied towards premiums for any type of plan or combination of plans.
Some individuals have been able to receive subsidies by accurately estimating their future income. However, if this estimate was false, they may need to reimburse any extra money received when filing taxes.
Maximum Income
Before 2021, subsidies were only available to people whose income (ACA-specific modified adjusted gross income or MAGI) fell below 400% of the federal poverty level or lower. But thanks to the American Rescue Plan (ARP) and Inflation Reduction Act, premium subsidies are now accessible to households regardless of ACA-specific MAGI.
In 2021 and beyond, a rule will limit the cost of marketplace health insurance premiums for the benchmark plan (the lowest-cost silver plan on the exchange) to 8.5% of your income. For instance, couples making $46,200 would pay no more than $8,500 if they had to purchase their own coverage.
This is a significant improvement over the subsidy cliff that existed from 2015-2018. The ARP and Inflation Reduction Act extended this rule until 2025, making it easier for people who are uninsured to find coverage, as well as increasing enrollment in Obamacare 2022.
Subsidies
ACA subsidies are available to assist lower-income people pay their health insurance premiums. They work like an advance tax credit that you can claim when filing your federal income taxes.
Subsidies come in the form of discounts on your monthly premium payments that are paid directly to your health insurance carrier. The amount of subsidy depends on both your income and family size.
The premium subsidy is only applicable to ACA-compliant plans purchased on the exchange. It does not apply to non-ACA plans offered outside the exchange, catastrophic coverage, short-term health insurance plans, standalone prescription drug plans or insurance supplements for dental, vision and critical illness.
Before 2021, those earning more than 400% of the federal poverty level (FPL) would forfeit all their premium subsidies. However, recent legislation changed this ACA subsidy cliff into a gradual slope.
Tax Credits
The Affordable Care Act (ACA) offers tax credits to help lower-income individuals afford health insurance. These subsidies, known as advance premium tax credits (APTCs), protect people from rising premiums that typically rise in accordance with income level.
For 2022, these credits are available to individuals and families with taxable incomes between 100 percent and 400 percent of the federal poverty level. They may be taken in a variety of ways.
To be eligible for a premium tax credit, an individual or family must have enrolled in an authorized Marketplace health plan from either federal or state exchange. These plans are usually referred to as bronze, silver or gold options.
When multiple members of a household live together in one household, the amount of the APTC will depend on each person’s income and family size. Those with higher salaries will receive larger credits to help cover healthcare costs.
