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Affordable Care Act - ObamaCare


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It's that time of year to sign up for ACA if you are not on Medicare yet (less than 65 years old) and are not covered by any other healthcare plan (such as those offered by your employer, if still employed). The Inflation Reduction Act keeps savings and lower costs through 2025. Under ACA you may be eligible for a premium tax credit (reduces the amount you pay for insurance premiums) and may be eligible for Cost Sharing Reduction (lower deductible, co-pays, etc.). These costs saving are based on the Federal Poverty Level (FPL) which for a family of two in 2023 is $18,310. You compare your modified adjusted gross income (MAGI) to the poverty level. Your cost saving are based on what % your MAGI is above the FPL. Greater than 400% of the FPL and your max cost for the Insurance premium is 8.5% of your MAGI. Less than 400% and the savings level get better in % steps. If you MAGI is less than 150% of the FPL (but greater than 133%) meaning less than $27,465 for a family of two, you may be eligible for cost sharing reduction. So, since the savings afforded to you via ACA is solely based on income (not net worth) you have options. For example if you are retired, have no earned income, not taking social security, not getting any pensions, and have sources of money that does not go into your MAGI such as Roth withdraws, saving accounts, etc to live on, you can get you MAGI down below 150% of the FPL and get great deals from ACA. Thoughts??