Who is eligible?
Subsidies aren’t just for the poor. The subsidy that Obamacare offers, given in the form of a tax credit, is meant to offset insurance costs to limit the percentage of income spent on insurance premiums. The subsidy phases out, though, when a person’s income exceeds 400 percent of a given year’s federal poverty level. In 2013, for instance, the FPL for a single-person household is $11,490, while the FPL for a four-person household is $23,550, according to the Office of Assistant Secretary for Planning and Evaluation.
A quick overview of the subsidy levels…
The percentage allowed will depend on one’s income bracket. For earnings up to 133 percent of the FPL, premium spending will be limited to 2 percent of income. For income between 200 percent and 250 percent of the FPL, spending will be limited to 6.3 percent of income. And for earnings between 350 percent of the FPL, spending will be capped at 9.5 percent of income.
View a more complete table of Federal Poverty levels for various size families which extend these tables to 400% of income under the Obamacare resoures tab of this blog.
As they say, read the whole thing. I’m going to link to this article on my resource page.