Federal Poverty Level (FPL)

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Federal Poverty Level (FPL)


The term Federal Poverty Level has become the common term. It is officially called Federal Poverty Guidelines. It is a measure of income level.

The Department of Health and Human Services issues a federal poverty guideline every year. The poverty guidelines are referred to as the federal poverty level.

Federal poverty levels are used to determine eligibility for certain programs and benefits such as Medicaid and other government programs.

Federal poverty levels are used to determine eligibility for premium tax credits to use for purchasing health insurance through the Marketplace.

♦ Tax credits for 2024 coverage will be based on FPL for 2023.

Federal poverty levels for 2023
• $14,580 for individuals
• $19,720 for a family of 2
• $24,860 for a family of 3
• $30,000 for a family of 4

A family of 4 with an annual income of $30,000 would be at 100% of FPL for their family size.

Federal poverty levels are higher in Alaska and Hawaii.

For the most up-to-data data go to the US Department of Health & Human Services.

The Marketplace takes your Modified Adjusted Gross Income (MAGI) and compares it to the FPL for your family size when determining eligibility for the Advanced Premium Tax Credits (APTC).

The MAGI amount can be found on your Federal income tax form.

How federal poverty levels are used

• Income between 100% and 400% FPL: If your income is in this range, in all states you qualify for premium tax credits that lower your monthly premium for a Marketplace health insurance plan.

• Income below 138% FPL: If your income is below 138% FPL and your state has expanded Medicaid coverage, you qualify for Medicaid based only on your income.

• Income below 100% FPL: If your income falls below 100% FPL and your state hasn't expanded Medicaid coverage, you won't qualify for either income-based Medicaid or savings on a Marketplace health insurance plan. You may still qualify for Medicaid under your state's current rules.

Related content

Tax Credits

• Advanced Premium Tax Credit (APTC)

• Subsidy Calculator