Ok, under the ACA a person can still get a tax subsidy if their employer insurance cost’s more than 9.5% of the the employee’s total income. However, that cost ONLY factors in the price of individual insurance. So if I have a family and family insurance is expensive then will I be forced to buy expensive insurance without a subsidy if the INDIVIDUAL plan is below 9.5% of my total income (which will be my case next year). Will I be allowed to purchase insurance elsewhere for my family as long as I buy my personal insurance through my employer and still get the tax subsidy for my family’s insurance (I will be under 4% of the poverty level)? This isn’t a political question and I’m just trying to get some info.
Update:
@Flower
You get the subsidy on your employer’s plan IF the employer’s plan on a SINGLE employee is above 9.5% of the employees annual income. It’s more limited than the exchange subsidy and is the only way to get the subsidy on the employer plan. The exchange offers a subsidy based on your income on a sliding scale (topping out a 9.5% and 4% of the poverty line) and includes family plans.
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✅ Answers
The subsidy is ONLY for insurance you buy from the state-run insurance exchange. The employer’s insurance is not part of it. You can drop your employer insurance and find one from the exchange and pay only 9.5% of your income for premiums, but not with employer plan. You dont get anything from using employer insurance. That is a group plan at a group rate and totally a separate plan and you dont get any individual discount under the ACA.
While you can purchase a family policy outside of your employer (you do realize how much they cost, right? Average is $15 a month without maternity benefits), any “subsidy” you get would be after the fact – ie, when you file your income taxes the next year. Can you FLOAT that much of a loan to the government? Most families can’t.
These regulations are still being written and re-written. As of now, if your employer provided insurance is less than 9.5% of your gross salary your family is not eligible for the subsidy nor will the employer be liable for the fines. You can still purchase the policy elsewhere.
Source(s): Independent Ägent