Subsidies are benefits that take away a financial burden. The federal government provides subsidies that reduce the premium price for your insurance policy. You may have also heard them called insurance tax credits.
The insurance company receives the payment directly. Then, when you compare health insurance quotes on the federal Health Insurance Marketplace website, you will see your discounted premium amount.
You will need to input personal information to see if you qualify for a subsidy. Information you will need to disclose includes the following:
- Your email address
- Your state
- Your birthday
- If you smoke tobacco
- Your income in the upcoming year
- Who lives in your household
If you have additional family members who need coverage, you will need to input their personal details as well. Once you have completed the online application for financial assistance, you will receive immediate notice of your eligibility. You will also find out the amount of your subsidy.
To use the subsidy, continue to compare the plans available to you based on your area. There are different “metal” levels, which indicate what your medical costs look like. The metal tiers are as follows:
- Bronze health insurance plans have the lowest premium. However, they have the highest costs for services.
- Silver health insurance plans have higher premiums but lower copayments than bronze plans. They also have lower premiums and higher copayments than gold.
- Gold health insurance plans have high premiums but low copayments.
- Platinum health insurance plans have the lowest copayments, but their premiums are the highest.
If you are young and do not depend on regular medical, there is a cheaper option.