The Affordable Care Act, ObamaCare: Do the math

Oct 2013. Your approximate Premium Limit, Based on Income as a percent of the Federal Poverty Line (FPL):

Up to 133% FPL, 2% of income;
133 – 150% FPL, 3 – 4% of income;
150 – 200% FPL, 4 – 6.3% of income;
200 – 250% FPL, 6.3 – 8.05% of income;
250 – 300% FPL, 8.05 – 9.5% of income;
350 – 400% FPL, 9.5% of income.

Chart showing Federal Poverty Levels:

When you use the Health Insurance Marketplace you may be able to get lower costs on monthly premiums or out-of-pocket costs, or get free or low-cost coverage.

3 ways to save on health care coverage

You can save money in the Health Insurance Marketplace 3 ways. All of them depend on your income and family size.

  1. You may be able to lower costs on your monthly premiums when you enroll in a private health insurance plan. These plans all cover essential health benefits and pre-existing conditions.
  2. You may qualify for lower out-of-pocket costs for copayments, coinsurance, and deductibles.
  3. You or your child may get free or low-cost coverage through Medicaid or the Children’s Health Insurance Program CHIP. Some states will be expanding Medicaid eligibility in 2014, so you may qualify even if you have been turned down for Medicaid in the past.

You can apply any time during open enrollment, which began October 1 and continues through the end of March. You’ll find out what plans and premiums are available to you and see how much you will save. Most people who apply will qualify for lower costs of some kind. Coverage can begin as soon as January 1, 2014.