Why doesn’t someone with income below the federal poverty level qualify for a Premium Tax Credit?
I realize that they probably qualify for an exemption to the individual coverage mandate but it simply doesn’t make sense that if they want coverage that they receive NO Premium Tax Credit while someone a $1 over the FPL receives a very large Premium Tax Credit.
The reason people with incomes below the Federal Poverty Level don't qualify for tax credits is Medicaid expansion was supposed to cover those with incomes below the 100% FPL mark, but anti-ObamaCare opposition repealed the part of the law that made expanding Medicaid mandatory.
Due to states rejecting Medicaid about 5 million low-income Americans are left without affordable coverage options.
Make sure to thank your state officials if you fell in the "Medicaid Gap" due to their opposition. But before you do that, apply for Medicaid. You'll be able to use your rejection letter to get an exemption and qualify for catastrophic coverage.