GETTING INSURED: Jim Donovan Tip #4
By Jim Donovan
PHILADELPHIA (CBS) — So how does the Affordable Care Act make health insurance more affordable for those people who are currently uninsured? Well it depends on who you are, and where you buy that insurance.
If you enroll in an insurance plan though an online marketplace set up in your state, you may qualify for tax credits based on your income and family size. Those credits are used to lower your monthly premium.
For example, in New Jersey a low cost health insurance plan would cost the average 27-year-old around $219 a month. But if that person had an income of only $25,000 well then tax credits would kick in to help purchase the coverage. The monthly premium could drop from $219 to around $103 a month.
The government estimates that about half of the Americans enrolling for insurance under the Affordable Care Act through the Health Insurance Marketplace will be eligible for some sort of tax credit to lower their premiums.
I’ve come across a pretty good calculator that you can use to see if you too would may be eligible for a tax credit. Just click the link below:
By the way, you can still purchase insurance coverage outside of the marketplace, but you won’t be eligible for any tax credit. So keep that in mind when shopping around.