Information is scarce as to how much the premiums purchased in the healthcare exchanges are going to cost. Preliminary pricing estimates have some worried about their ability to afford the cost and are considering taking the tax penalty instead of buying a policy. However, many individuals are going to find themselves eligible to take advantage of the federal tax credits that reduce the cost of the monthly premium. The tax credit eliminates the need to go without insurance and makes the premium that much more affordable.
Eligibility for the tax credit is relatively simple. The individual has to have income that is between 100 percent and 400 percent of the federal poverty level, and purchase the policy through an exchange or marketplace. As an example, an individual making $30,000 a year has a policy that costs $3,857 per year. The individual is responsible for paying 8.37 percent of their income towards their premium. The total tax credit is $1,345, leaving a balance of $2,512 to be paid by the individual, or a little more than $200 a month. Those who are able to get affordable coverage through an employer or Medicaid are ineligible to receive tax credits.
For more information about health care policies in the Sonoma County area, contact Sackett & Associates for what is available and quotes.