The Federal Poverty Level: Do you qualify for a subsidy?

As an individual seeking health coverage, you may qualify for subsidy assistance based on your income, relative to the Federal Poverty Level.

What is the Federal Poverty Level?

Quite simply, it is a range of incomes, compared with the number of people in a given household, which is then compared to the Federal poverty line. Once your income is compared to the “FPL”, you can then see if you qualify for subsidy assistance on your coverage, when applied for within Covered California. (or Medicaid for all or part of your household).

According to the Obama Care Facts website:

“As a rule of thumb if your family income is less than four times the published Federal Poverty Guideline (400% of FPL) for your household size, and you are not eligible for employer or other public assisted healthcare (such as Medicaid or Medicare), you will be able to receive premium subsidies to help you purchase affordable insurance through your State’s Health Insurance Marketplace.  Although technically a “tax credit” which you will receive when you file your 2014 tax return, a tax credit advance will be paid directly to the insurance provider you choose, reducing the monthly premium you have to pay. If at the end of the year your income turns out to be more or less than expected the tax credit will be adjusted and added to or taken from any tax refund or payment due.”

For a link to our subsidy calculation sheet, as provided by Covered California, see the following link:

>> Click Here

Ultimately, it’s important to understand where you are relative to the FPL, and what kind, if any subsidy, you might qualify for. After you decide that the subsidy is worth pursuing, we advise you read our recent post on registering for coverage with Covered California, by clicking here.

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