Americans are Qualifying for Thousands in ACA Support

by tempuser

Health insurance costs can be a significant burden, but thanks to the Affordable Care Act (ACA), commonly referred to as “Obamacare,” many Americans are benefiting from substantial financial help. On average, individuals are seeing savings of $6,314 from ACA subsidies. These tax credits help reduce the cost of health insurance premiums based on family size and income. Accessible when you purchase insurance through or a state-specific marketplace, these subsidies are available for a variety of plan levels. Last year, over 91% of plans sold through the marketplace were subsidized, helping make health coverage more affordable for millions. Whether you’re single or have a family, tapping into these subsidies could lead to significant savings on your health insurance costs.

Americans See an Average of $6,314 from Subsidies

ACA subsidies, also known as “Obamacare” subsidies, are tax credits that reduce the cost of health insurance based on family size and income. Eligible individuals must purchase their plan through or a state-specific marketplace. These subsidies can lower monthly insurance costs or be claimed all at once as a tax credit during tax filing. They’re available for various plan levels—Bronze, Silver, Gold, and Platinum—but not for the lowest-cost plans or coverage through Medicaid, CHIP, or employers. In fact, over 91% of marketplace plans sold in 2023 were subsidized. That’s huge. It means the vast majority of people are getting some financial help to make their health coverage more budget-friendly. 

Who Can Benefit from These Subsidies?

If your income falls between 100% and 400% of the federal poverty level, you may qualify for a tax credit that lowers your monthly premium. The amount of your subsidy depends on where you land in that income range. To put that in perspective, for 2024, the typical max income limits are:

  • $58,320 for a 1-person-household
  • $78,880 for a 2-person household
  • $99,440 for a 3-person household
  • $120,000 for a 4-person household
  • $140,560 for a 5-person household
  • $161,120 for a 6-person household
  • $181,680 for a 7-person household
  • $202,240 for a 8-person household

There are also minimums in place to keep in mind:

  • $14,580 for a 1-person-household
  • $19,720 for a 2-person-household
  • $24,860 for a 3-person-household
  • $30,000 for a 4-person-household
  • $35,140 for a 5-person-household
  • $40,280 for a 6-person-household
  • $45,420 for a 7-person-household
  • $50,560 for a 8-person-household

Your Income Doesn’t Fit That Range?

If your income is above the set limits, you could still get subsidies if your health insurance exceeds 8.5% of your income. For instance, a 60-year-old earning $60,000 and facing an $800 monthly insurance bill could receive a subsidy. This subsidy would cut their payment down to $425 per month, aligning it with 8.5% of their income. On the other hand, if you earn below the federal poverty level, you won’t qualify for ACA subsidies. Instead, you’ll likely be eligible for Medicaid, which generally offers more affordable coverage than what’s available through marketplace subsidies.

Do You Owe Subsidies?

You don’t have to pay back health insurance subsidies, but there might be adjustments at tax time. This happens because the subsidies are given as an “advance tax credit” based on your estimated yearly income. If your actual income is different from what you estimated, it could change how much subsidy you were supposed to get. If you received less subsidy than you qualify for, you’ll get the difference as a tax credit when you file your taxes. But if you received more, you’ll need to repay some or all of the excess. Also, if you’re eligible for a premium subsidy, you might qualify for cost-sharing reductions. These reduce your out-of-pocket costs like deductibles and copays, but only if you choose a Silver plan.

How to Benefit From These Subsidies?

Subsidies for health insurance are expected to last until 2025. The key date to remember is the open enrollment deadline, which is typically January 15. If you sign up by then, you can get subsidies for the entire year. If you miss this deadline, you might still be able to enroll later if you experience major life changes like moving, a change in your family size, or having a low income.


In conclusion, the Affordable Care Act (ACA) subsidies offer a crucial financial lifeline to many Americans struggling with the high cost of health insurance. With average savings of $6,314, these subsidies not only make healthcare more accessible but also more affordable. Whether you’re just above the poverty line or nearing the upper income limit, there’s a good chance you could qualify for some level of support. Remember, it’s essential to apply during the open enrollment period to take full advantage of these benefits for the year. By doing so, you ensure that your health insurance costs are manageable, allowing you to focus more on your health and less on your finances.

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