Getting federal financial assistance, also known as federal aid, depends on your household size and income. If you qualify, you may be able to get a health plan at a lower cost. These are qualified health plans that come with financial help from the federal government. Here are some key things to know about federal aid:
Are you eligible for health insurance subsidy?
Depending on your household size and income, you may qualify for this assistance.
- People age 26 and older, even students, who file their own federal taxes, may be able to get both types of aid.
- People who don’t have a job and don't have COBRA coverage may also be able to get one or both types of aid.
- Native Americans and Alaskan natives may also be able to get help with their Marketplace or Tribal health plan.
Two types of financial assistance
There are two ways you may be able to help save money on your health care plan costs. One way is by getting a premium tax credit. The other is by getting a cost sharing reduction (CSR). Premium tax credits and cost sharing reductions are types of federal financial assistance1 given to people who qualify in order to help make health insurance more affordable.
Premium tax credits lower your health care premiums
Premium tax credits lower your monthly health care plan premiums. If you qualify, you have two choices for the way you use this aid. After you sign up for your qualified health plan, you can have the federal government pay the tax credit right to the insurance carrier each month. This lowers the monthly premium amount you pay. Your other choice is to get a tax credit when you file your federal income taxes. This means you pay the full amount of your insurance premium each month. Then you get the total credit after you file your taxes. You can use the premium tax credit toward any qualified health plan on the Marketplace.
Cost sharing reductions lower your other costs
Cost sharing reductions lower the amount you have to pay out of pocket when you get care, costs like deductibles, copayments and coinsurance. To take advantage of these savings, you must qualify and enroll in a Marketplace Silver qualified health plan. There is no option to get cost sharing reductions by filing a year-end tax return. If you qualify for this type of aid, you pay less out of pocket for things like deductibles, copayments, and coinsurance when you get care.
Federal health care aid at a glance
|Premium Tax Credit||Cost Sharing Reduction|
|Am I eligible?||You may be eligible if:
||You may be eligible if:
|Where can I use it?||Any qualified Marketplace health plan, including eligible health plans purchased directly from Cigna.||Only on Silver-level qualified Marketplace health plans|
|How much can I get?||Varies based on the number of people in your house and how much they make||Varies based on the number of people in your house and how much they make|
|How does it work?||
Find out if you can get federal aid
You may qualify for both a premium tax credit and a cost sharing reduction. During the Open Enrollment Period, you can find out what you’re eligible for when you apply online through Cigna or on the Marketplace and get your results. The application asks for info, including household size and income. You can save your online application as you go.