How health insurance savings work
- Savings are based on household income and size.
- They can be paid in advance to lower your monthly premium.
- Report income changes to avoid surprises at tax time.
Many people who buy their own coverage qualify for a premium tax credit that lowers their monthly payment. Here is how it works.
Who qualifies
Eligibility depends on your expected household income, household size, and the plans available where you live. Under current rules, credits are generally available to households with income between 100% and 400% of the federal poverty level, though you also cannot be eligible for affordable employer coverage or certain public programs. Rules can change, so confirm current figures with an agent.
How income is counted
The Marketplace uses a version of your adjusted gross income for your whole tax household, estimated for the year you are buying coverage, not last year. Self-employed people usually use net business income.
How you receive it
You can take the credit in advance, which lowers your premium each month, or claim it when you file taxes.
Reconciling at tax time
If you take the credit in advance, it is checked against your actual income when you file. If you earned more than estimated, you may have to repay some or all of it. If you earned less, you may get more back. Updating your income during the year helps avoid surprises.
Arizona specifics
Arizona uses the federal Marketplace, HealthCare.gov, for individual plans. Lower-income residents may qualify for AHCCCS, Arizona's Medicaid program, instead.
See your Arizona options
Answer a few quick questions. A licensed agent will walk you through plans that fit.
This article is general information, not legal, tax or medical advice. Plan availability, benefits, eligibility and prices vary by location and situation. A licensed agent can review your specific options.