Today, I want to talk about how to get a subsidy for your dependents’ health insurance. A lot of people call me throughout the year when their group insurance is coming up for renewal, and they ask me, “Can I get a lower premium for my wife and children?”
Prior to 2023, most of the time I had to tell them no, because the marketplace bases whether or not you’re eligible to get the subsidy only on what the employee’s premium is in the group policy and only based on what their income is in that group.
So they’d come to me and they’d say, “Well, it only costs $50 a month for me,” or “It’s $100 a month for me, but it costs $800 or $900 to add my family.”
When I run the numbers, if I take the employee’s annual income and I take about 9.8% of that divided by 12, if that employee is paying less just for his coverage than what that comes out to monthly, it’s deemed affordable and there was nothing I could do to help him.
A Change in the Health Insurance Law in 2023
Fast-forward then to 2023. This problem has been addressed. The problem was called “the family glitch.”
So now that same person comes to me, I put all their information into the system. I put in how much it would cost for the whole family to be on their group insurance. I factor in the entire family’s income. And when we get to the end, the system tells us if that person qualifies for some subsidy to be applied to their wife and children.
When that’s the case, we’re able to get their insurance on the Marketplace (the ACA) at a lower premium while the employed person takes the group plan and the advantage of the employer contribution.
At times, that $800 or $900 premium that I was mentioning is now maybe $300. It’s a very big difference and it can help so many families. A lot of them just aren’t aware that this possibility is out there and available.
Need Help? Contact Us for Accurate Advice
So please, when you’re looking at your health insurance with your group or even your health insurance renewal for yourself as an individual, use a professional.
At MBhealth Insurance Agency, we’re here to answer those questions and point you in the right direction. To get help, call us today at (314) 544-5400.
