Are Health Insurance Costs Based on Taxable or Gross Income? Twitter Facebook Is the cost of insurance based on taxable income or gross income? Answer Eligibility for health insurance cost assistance is based on Modified Adjusted Gross Income (MAGI). If you would like to calculate your MAGI, you can use the IRS MAGI Calculator. Rate and Comment on the Answer Cancel reply Your email address will not be published. Required fields are marked *Comment Name * Email * Save my name, email, and website in this browser for the next time I comment. Rate this Answer (1-5)* 1 2 3 4 5 This site uses Akismet to reduce spam. Learn how your comment data is processed.