What are the Health Insurance Tax Subsidies?

Typically, APTC’s or Advanced Premium Tax Credits, were available to households who’s household income fell between 138%- 400% (State specific minimum FPL percent; Michigan is 138%) and met other qualifying criteria*

Temporary changes were made to income thresholds due to the American Recovery Act, and will be in effect through, at least, the end of 2025.  Although minimum income thresholds of 138% FPL are still in effect, the ceiling of 400% has been removed.  Individuals applying for subsidies will need to have a calculator run to identify at what income level eligibility phases out. The subsidies will cap the cost of health insurance at 2% – 9.5% of household income, if household income is up to 400% above the federal poverty line (FPL).

* If you and/or your dependents are eligible for other Qualified Coverage, such as employer based coverage; that coverage is considered Minimum Essential Coverage, and the premium you pay passes ‘Affordability’ tests, in most cases, that offer of other coverage can disqualify you from subsidy eligibility.  Please call to speak with an agent about these rules and to help determine your eligibility.

To calculate your potential subsidy  please visit calculators through this link: Calculators