2024 ObamaCare Subsidy Facts + Subsidy Calculator

2024 ObamaCare Open Enrollment: Key Subsidy Updates and Calculator Guide

The 2024 open enrollment season, from November 1, 2023, to January 15, 2024, in most states, introduces several updates in the Marketplace, particularly in terms of subsidies. Let’s delve into the most crucial changes, explore a quick way to calculate subsidies, and uncover some lesser-known subsidy facts.^[1]

Expanded Eligibility and Subsidy Adjustments

The American Rescue Plan Act of 2021 and the Inflation Reduction Act have notably expanded the scope of subsidies under the Affordable Care Act (ACA). These changes include eliminating the upper income limit for premium tax credit subsidy eligibility until 2025. Previously, subsidies were mainly available to households earning between 100% and 400% of the Federal Poverty Level (FPL).

However, now, individuals and families earning above 400% of the FPL can qualify for subsidies if their insurance premiums exceed a certain percentage of their income. In 2024, this means that middle and upper-middle-class families, who were previously excluded due to their higher income, are now eligible for financial assistance for health coverage.

FACT: Tax credits can be taken in advance as Advanced Premium Tax Credits (APTC) or can be claimed when filing taxes.

FACT: Under the old rules, only individuals making between $14,580 and $58,320, and families of four earning between $30,000 and $120,000, qualified for assistance. The new rules remove the “subsidy cliff” at these income levels, allowing those earning above these amounts to qualify for tax credits.

Using the 2024 ObamaCare Subsidy Calculator

The subsidy calculator is a vital tool for estimating potential savings. With the removal of the 400% FPL subsidy cliff until 2025, a wider range of incomes can now receive scaled tax credits, making the calculator essential for accurately determining subsidy amounts based on projected household income.

You can use the calculator below to quickly determine your eligibility for cost assistance.

2024 ObamaCare Subsidy Calculator

Use the following subsidy calculator to determine if you qualify for 2024 assistance.

NOTE: The subsidy calculator below uses the currently available levels to give you an idea of 2024 subsidy amounts. The exact amount of assistance you qualify for depends on your actual income.

Other Assitance Types

• Cost-Sharing Reduction Subsidies (Silver Plans only)
• Medicaid Expansion and CHIP

Each assistance type has different eligibility requirements based on income as a percentage of the federal poverty level.

NOTE: Medicaid/CHIP eligibility will be updated when the new Federal Poverty level data is published in early 2024.

Factors Influencing Premium Changes

In 2024, unsubsidized premiums in ACA Marketplaces are expected to rise due to inflation and other economic factors, with an average increase of about 5% for the benchmark Silver plan. Fortunately, most enrollees will be protected from these increases thanks to enhanced subsidies that cap premium costs relative to household income. In fact, many enrollees will continue to find plans at approximately $10 a month, a price point consistent with past years.

Increasing Insurer Participation and State-Level Policy Changes

2024 sees increased insurer participation in the ACA Marketplaces, with new insurers entering various states. Additionally, state-level policies are changing, with some states implementing their own enrollment platforms and offering additional subsidies or cost-sharing reductions. This means that in many regions, shoppers have more options for plans.

Auto-Reenrollment Policy and Income Verification Extensions

A new auto-reenrollment policy on Healthcare.gov will automatically move eligible individuals to plans with lower cost-sharing if they do not act during Open Enrollment, potentially saving them money on deductibles. The Marketplace is also extending the period for submitting income verification to a total of 150 days, providing an additional 60 days to submit required documentation.

Special Provisions for Young Adults and Special Enrollment Periods (SEPs)

Young adults turning 26 in 2024 will have extended coverage on their parents’ Marketplace plans until the next open enrollment. SEPs have also been adjusted to accommodate circumstances like Medicaid disenrollment, natural disasters, and loss of other coverage.

Reinstatement of the “File and Reconcile” Requirement

The “file and reconcile” requirement for tax credit recipients, previously waived during the pandemic, is reinstated. Not filing and reconciling for two consecutive years will result in losing eligibility for advanced premium tax credits (APTC) the following year.^[2]

Conclusion

The 2024 ObamaCare subsidy calculator and the related changes mark significant advancements in making healthcare more accessible and affordable. Coupled with state-specific adjustments and new policies, these enhancements create a dynamic landscape for Americans seeking healthcare coverage in 2024. Staying informed and proactive in understanding these changes is essential for optimizing healthcare benefits.

1. New, lower costs on Marketplace coverage. HealthCare.Gov.
2. What does “Failure to File and Reconcile” mean? CMS.Gov.