ObamaCare introduces a system where you need to figure out what your income is and compare it to the federal poverty guidelines to see if you will qualify for a subsidy when you apply for health insurance on one of the state exchanges. A subsidy is a tax credit that will in effect lessen the amount you pay for your monthly premium.
People who currently have no health insurance, are self employed, or work for a company that does not provide health care coverage will be the ones who need to buy ObamaCare insurance from their state exchange.
First you need to calculate how many family members you are trying to insure. If you make less than the poverty level in your state, you may qualify for expanded Medicaid even if you are under the age of 65. Anyone over 65 will automatically qualify for Medicaid no matter where they live or what they make.
Most people’s income is above the poverty level. However, they may be eligible for a tax subsidy if their income is between the poverty level and less than 400% of that level. For instance, a family of 2 making between $15,510 and $62,040 (400% of $15,510) may be able to qualify for a subsidy. I use the word “may” because there are still a lot of problems with the ObamaCare exchanges right now that still need to be fixed.
The Affordable Care Act is banking on many people being able to get tax subsidies to lessen the cost of their premiums. The charts below show what the poverty levels are for the 50 states in 2013 and based on those numbers, you should be able to calculate whether you make less than 400%.
If you make more than 400% of the poverty level for the number of people in your household, you will NOT be eligible for any tax credit and must pay the full amount of your new ObamaCare health care premium. It is those people who make too much to get a subsidy that have been reporting their health care costs going way up under ObamaCare.