Subsidized Coverage

Health coverage available at reduced or no cost for people with incomes below certain levels.

Examples of subsidized coverage include Medicaid and the Children’s Health Insurance Program (CHIP).

Marketplace insurance plans with premium tax credits are sometimes known as subsidized coverage too.

• In states that have expanded Medicaid coverage, your household income must be below 138% of the Federal poverty level to qualify.

• In all states, your household income must be between 100% and 400% of the federal poverty level to qualify for a premium tax credit that can lower your insurance costs.

The American Rescue Plan Act of 2021 greatly expanded Premium Tax Credits for 2 years so that households with income over 400% FPL could qualify for some tax credits.

The Inflation Reduction Act (IRA) of 2022 extended this benefit until the end of 2025.

♦ Importantly - In 2025, APTC are still available to individuals and families earning more than 400%.

After 2025, there maybe be a cutoff at 400% unless they are reauthorized and funded by the Republican congress, which is doubtful.