Despite being enacted over a decade ago, many individuals and families fail to take advantage of the Affordable Care Act (ACA). Reducing your health insurance costs
starts with understanding what the law is and how it works.
This article will cover what it is and how to qualify so you can finally take advantage of great insurance with a lower premium.
What is the Affordable Care Act?
The Affordable Care Act (ACA), also referred to as Obamacare, is a comprehensive reform law enacted in 2010. It is designed to increase health insurance coverage for those who lack uninsurance, primarily due to high premiums or access. Additionally, the ACA expanded Medicaid eligibility and prohibited insurance companies from denying coverage due to preexisting conditions.
Due to the ACA, patients who might have been uninsured before can now secure affordable health insurance using their state’s marketplace. That’s because insurance plans on the ACA marketplace are subsidized or federally regulated during open enrollment.
That means that qualifying individuals can receive premium tax credits that lower owed taxes or increase tax refunds. However, they can also be in the form of Advanced Premium Tax Credits that instantly lower the out-of-pocket monthly costs for health insurance.
Benefits of the Affordable Care Act
There are lots of advantages of the ACA, including:
- Lower premiums available for better coverage
- Prevention of unreasonable rate increases
- Expands healthcare availability to low-income individuals
- People with pre-existing conditions can’t be denied coverage
- Allows for prevention and wellness care coverage like screenings,
- Immunizations, and more
Who Can Qualify for ACA?
Everybody would like to save money on health insurance, but there are some qualifications you need to meet to be eligible for Affordable Care Act coverage.
Firstly, you have to be a U.S. citizen or lawfully present national, currently living in the United States. You also must not be incarcerated or have Medicare coverage.
Secondly, while anyone can purchase health insurance under the ACA, only those who meet certain household income requirements qualify for financial assistance that reduces premiums and out-of-pocket monthly costs.
Those who have household incomes between 100% and 400% of the Federal Poverty Level (FPL) may qualify for financial help. For the 2024 coverage year, refer to the chart to see if you qualify between 100% and 400%:
| # Persons in Household | 100% FPL | 400% FPL |
| 1 | $14,580 | $58,320 |
| 2 | $19,720 | $78,880 |
| 3 | $24,860 | $99,440 |
| 4 | $30,000 | $120,000 |
| 5 | $35,140 | $140,560 |
| 6 | $40,280 | $161,120 |
| 7 | $45,420 | $181,680 |
| 8 | $50,560 | $202,240 |
If you land between those numbers for the number of persons in your household and you live in the U.S. legally without being in jail or prison, then you likely qualify for lower premiums.
Final Thoughts on the Affordable Care Act
As you can see, as long as you qualify for ACA coverage, you can access a marketplace full of great plans at lower monthly out-of-pocket rates. That means instant savings for you and your family.
However, to lower monthly costs instead of receiving tax credits once a year during tax season, you also need to receive Advanced Premium Credits. If you make less than $50,000 annually, you can receive those credits that lower your costs and secure excellent coverage.