Don’t think you’re eligible for an ACA subsidy?

by David Lingholm

| 2 min read

Many of the most common questions about the Affordable Care Act center on the subsidies or tax credits, which are intended to help make monthly premiums more affordable. Some of the questions we are often asked include who is eligible for a subsidy or a tax credit through the ACA? And how are those subsidies applied? These are important questions for anyone who is thinking about buying or is buying insurance as an individual, regardless of carrier. In fact, approximately half of BCBSM’s individual insurance members are eligible for a subsidy and might not know it. Let’s tackle who is eligible for a subsidy first. BCBSM does offer an online subsidy estimator, but if you want an at-a-glance view of your eligibility, the following chart is a good place to start.
General Household Income Guidelines for Subsidy Assistance
Number of people in consumer’s family/household seeking coverage An individual making an annual income of less than the amounts below (400% of the Federal Poverty Level) may quality for a subsidy An individual makes less than the amounts listed below (250% of the federal poverty level), they may also qualify for reduced silver plan cost sharing
1 $45,960 $28,725
2 $62,040 $38,775
3 $78.120 $48,825
4 $94,200 $58,875
5 $110,280 $68,925
6 $126,360 $78,975
7 $142,440 $89,025
8 $158,520 $99,075
If you do qualify, the subsidies can be applied to your premiums in one of three ways:
  • Apply all of it to your monthly premium, and receive the lump sum as a tax credit at the end of the tax year.
  • Apply all of it to your monthly premium to lower the amount you pay toward your premium each month.
  • Apply some of it to your monthly premium and receive the rest as a tax credit. This option could be right for you if you anticipate your income rising during the year.
For more information on health care reform, visit

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