Affordable Care Act / Obamacare Consulting

How do Health Insurance Exchanges Work

This video will provide you with a brief overview of the new Health Insurance Exchanges which have been established under the Affordable Care Act (or Obamacare as it is more commonly known).

If your employer does not offer a health insurance plan, the exchanges were established to allow you to purchase it at a more affordable price.

The Health Care Credit

Beginning in 2014, substantial savings on health insurance premiums will be available to those who purchase through the state run insurance exchanges. For those with incomes below 400% of the poverty level ($45,950 for single, $62,040 for a couple, $94,200 for a family of 4), the federal government will pay a portion of your premium.

The determination of the tax credit/subsidy will be made when you apply for the insurance. The subsidy will be based on your projected 2016 income. When you file your 2016 tax return, the projected income will be compared with your actual income as shown on your return. You’ll pay back some of the subsidy if your income is higher than projected, or receive an additional credit if income is lower than projected.

There are also penalties for those who chose to remain uninsured. Although the penalty was as low as $95 per person in 2014, by 2016 the penalty will rise to $695 per person or 2.5% of your income.

Health Insurance Marketplace Calculator

Access a convenient online Health Insurance premium and subsidy calculator from the Kaiser Family Foundation. You can enter different incomes, ages, and family sizes to get an estimate of your eligibility for subsidies and how much you could spend on health insurance.

» Access the calculator

Frequently Asked Questions

Get answers to some of the most common questions which we have received in regard to the Affordable Care Act. Use this to learn more about the health care credit and Obamacare in general.

» Read the FAQs