Premium assistance is available for individuals and families who make less than a certain amount a year and who do not have other options for obtaining affordable health insurance that meets certain coverage requirements, such as health coverage offered through their employer or another government program.
The amount of premium assistance depends on an individual’s income, age and where the person lives. The Patient Protection and Affordable Care Act sets a monthly maximum that people will pay for health care, based on where their income falls in the federal poverty level scale. In general, the less income someone makes, the less he or she will have to pay for health insurance and the more the federal government will help. For example, individuals who make up to $46,680 and families of four that make up to $95,400 may qualify for financial assistance.
Here are some key facts about premium assistance:
- Premium assistance reduces the cost of an individual’s or family’s health insurance plan premium.
- Premium assistance (a federal subsidy)is applied directly to the premium at the time an individual or family enrolls in health insurance. Enrollees don not need to wait until they file a tax return at the end of the year.
- Premium assistance is only available through Covered California. Californians must purchase their health insurance plan from Covered California if they want to get premium assistance.
- Premium assistance is paid by the federal government directly to the health plan an individual or family chooses through Covered California.