Health Policy Program

Subsidies to Purchase Insurance

Dollar Sign

The rising cost of health care has exceeded wage increases for some time. Accordingly, health insurance and health care have become more and more unaffordable for American families each year. The new health reform law will provide income-based subsidies to families and individuals with incomes between 133 and 400 percent of the federal poverty level. The subsidies will become available in 2014 to assist Americans purchasing insurance through the state health insurance exchanges and will increase over time to reflect the difference between premium growth and income growth. Premium contributions cannot exceed a certain percent of income, based on income level:

Up to 133% FPL: cannot exceed 2% of income

133-150% FPL: 3 – 4% of income

150-200% FPL: 4 – 6.3% of income

200-250% FPL: 6.3 – 8.05% of income

250-300% FPL: 8.05 – 9.5% of income

300-400% FPL: 9.5% of income

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