About 6.4 million Americans eligible to buy insurance through the new health exchanges will pay $100 or less a month in premiums because of tax subsidies, according to a Department of Health and Human Services report released this week.
The report shows that 56 percent, or nearly six in ten of the people who don’t have health insurance today may be able to get coverage through the Health Insurance Marketplace for less than $100 per month.
Beginning on October 1, individuals and families will have a new way to shop for coverage through the Health Insurance Marketplace. They’ll be able to compare their options using side-by-side information about price, quality and benefits. With one application they’ll be able to see if they qualify for premium tax credits or Medicaid that lower the costs of coverage right away.
Coverage through the Marketplace starts as early as January 1, 2014.
“The health care law is making health insurance more affordable,” said HHS Secretary Kathleen Sebelius. “With more than half of all uninsured Americans able to get coverage at $100 or less, the health care law is delivering the quality, affordable coverage people are looking for.”
Of the 41.3 million individuals who are uninsured and eligible for coverage, 23.2 million (56 percent) may qualify for Medicaid, the Children’s Health Insurance Program, or tax credits to purchase coverage for $100 or less per month. The amount an individual will save on premiums depends on their family income and size. Today’s report uses data about family income and size from the Census Bureau’s American Community Survey to estimate the number of uninsured individuals who will qualify for lower costs on monthly premiums.
The report also shows that if all 50 states took advantage of new options to expand Medicaid coverage, nearly 8 out of every 10 people (78 percent) who currently do not have insurance could be paying less than $100 a month for coverage under the Affordable Care Act. While some states are expanding their Medicaid programs in 2014, other states are not doing so. Under the health care law, states can receive 100 percent federal funding in 2014 to expand their Medicaid programs to cover people with incomes up to 133 percent of the federal poverty level. That’s about $15,800 a year for an individual, or about $32,500 for a family of four.
To find out more about who will qualify for lower costs on monthly health insurance premiums, visit:
For more information about the Health Insurance Marketplace and to sign up for coverage on October 1, visit HealthCare.gov.