Frequently Asked Questions

  • A subsidy is financial assistance from the government to help people pay for their individual health insurance. There are two kinds of health insurance subsidies: an advanced premium tax credit and a cost sharing reduction. Some people may qualify to receive both types of subsidies.

    Under the ACA, advanced premium tax credits can be used right away to lower monthly premium costs. If you qualify, you can choose how much is applied to your premium each month. If your yearly amount of advance credit is less than the tax credit you're due, you’ll get the difference as a refundable credit when you file your federal taxes. If your advance payments for the year are more than your credit, you must repay the excess with your tax return.

    A cost sharing reduction reduces your out-of-pocket maximum. This amount is the most you'll have to pay during a policy period for health care services you receive and includes your deductible, coinsurance and copays. It usually doesn't include premiums, out of network charges, or the cost of non-covered services. The "out-of-pocket" payment varies among healthcare plans.

    An agent can help you find out if you are eligible for a tax credit or cost sharing reduction. Several factors go into qualifying for a subsidy, including income, your family size, and how much health insurance costs on average in your area. It only takes a few minutes for an agent to find out if you qualify for a subsidy. Click here to find out if you qualify.