Individual & Family
Group health
Medicare Supplement

Best rates GUARANTEED

Free Assistance 800-320-6269

California health insurance    Covered California Questions    Exchange subsidies

Covered California Subsidies

We're starting to get into the grist of the new health reform changes coming to the California health insurance market and none are bigger (perhaps outside the mandate) than the subsidies available from purchasing coverage within the exchange. Back in June (2012), the Exchange gave some guidance on what these subsidies might look like and it's pretty telling and incredibly important to anyone who qualifies. Let's take a look.

A Quick Explanation of the Subsidies

Part of the health reform bill established that people would receive help paying for their insurance premium based on income levels. Up to 138% of the Federal poverty level, a person can enroll on Medi-Cal fully paid.  That's about $35K annual income for a family of four. From the 138% to 400% of the poverty level, people would receive subsidies up front when purchasing their health insurance plan on a sliding scale. As your income goes up from 138% to 400%, the subsidy goes down. 400% is about $93K annual income for the same family of four mentioned above. The subsidy can only be received inside the Exchange (called Covered California).

So What Are the Subsidy Amounts?

Let's break down 4 different expected situations to look at subsidies based on a family of 4 (two adults age 45). Keep in mind that family size and age will affect pricing and these are just estimates (but State estimates).

138% poverty level or $35K annual income
Expected monthly total premium of $1200; Monthly subsidy of $1100; Monthly premium of $100

200% of poverty level or $47K annual income
Expected monthly total premium of $1200; Monthly subsidy of $950; Monthly premium of $250

300% of poverty level or $70K annual income

Expected monthly total premium of $1200; Monthly subsidy of $630; Monthly premium of $570

400% of poverty level or $94K annual income

Expected monthly total premium of $1200; Monthly subsidy of $450; Monthly premium of $750

The best way to get your exact subsidy amount is to call 800-320-6269 so we can go through your situation.  It can be complicated do on your own. 

As Certified Covered California agents, our services are completely free to you.

Beyond 400% of poverty level (over $93K for family of four), there is no subsidy and you would pay the full premium amount. There may also be plans available off the exchange and we fully expect that the only reason a person would buy in the exchange would be due to subsidies. We'll have to see how this plays out. So what do we make of all the numbers?

Our main concern has always been affordability. We're hearing rumors of a "rate shock" with rates increasing 30-50% depending on age bands (higher increase for younger people due to 3/1 banding requirement). We think the Silver rate will be closer to $1300. Based on this, $200 will be out of a pocket per month for a family that earns roughly $3K monthly. This is definitely more manageable but still a concern at almost 10% of take home pay. At the other end, the monthly premium will be almost $1000/monthly which is a big hit. If you receive no subsidy at all (roughly $46K annually for an adult), the costs are going to be very high. Obviously, some changes will have to be made so people can afford the new rates and we'll update this site as that information comes in.

 

Related Page:

Health Exchange Penalties
Federal Poverty Level and Subsidies
 

You can run your Health Plan Quote here to view rates and plans side by side from the major carriers...Free.

Again, there is absolutely no cost to you for our services.  Call 800-320-6269 Today!

YOU MAY STILL BE
ABLE TO ENROLL

In just 15 minutes:

  • - Get the most tax credit available
  • - Find the best plan for your needs
  • - Enroll right over the phone!




Call 800-320-6269

Our Services are FREE to You!

Need Help
With Existing Account

We can help you:

  • -Get required docs to covered Ca.
  • -Make changes to income and other info
  • -Choose and finalize plan enrollment
  • -Make sure you get right tax credit
  • -Payment/membership issues with carriers

Call to Enroll over the Phone in 15 Minutes

If Your Income
Is In This Range

Current Years Estimate; All those that file together on one 1040:


Single Person: $16k - $23k
2 People $22k - $31k
3 People $27k - $39k
4 People $33k - $47k

Call 800-320-6269
Anthem Blue Cross California
Blue Shield of California
Kaiser of California
Health Net of California
Aetna
and more

Thousands of Californians
Hundreds of California Companies

SUCCESSFULLY
ENROLLED

Thousands of Californians
Hundreds of California Companies

from SC

"My sincere thanks for making a miracle happen- 2014 health insurance !! Many thanks for your expertise and advice yesterday !!"

from SD

"Thanks again for your help - I had absolutely no idea how to get this done when I got up this morning. You've made it remarkably easier than I expected. I hope you're not stuck at the office all night..."

from KV

"Anyway, I hope you got some time off this past week! Thank you again for your help and efforts on my behalf! I was very lucky to find you."

from EK

"I thank you very much for the time that you have invested in handling everything

from SR

"I truly appreciate the quick response and will think of you in the future if I need to make any changes to my insurance plans."

from VH

"You are awesome... takes a huge worry off my back, thank you for your kind. thanks for your time and kindness. !!"

from SA

"Wow, I can't thank you guys enough for your help...I couldn't imagine trying to tackle this on my own!"

from LM

"You are my new best friend. A HUGE thank you again.

SUCCESSFULLY
ENROLLED

Find out what customers are saying about our services
About Calhealth.net

20 years of experience in the California health insurance market has taught us one thing...Competent and experienced guidance is Invaluable

We can quickly (very important) size up your health insurance needs and clearly explain the options available to you. Our focus is finding the most coverage at the best cost to you.

We are licensed Covered Ca agents with in-depth knowledge of their plans, process, and tax credits.

Call us...you will be Pleasantly Surprised.  800-320-6269

Request a 10 Minute Health Plan Check-up

We'll quickly see if you have the best priced plan available and if you qualify for a tax credit

800-320-6269

Our Services are FREE to You

Calhealth.net is a Goodacre Insurance Services Website

This website is owned and operated by Goodacre Insurance Services, which is solely responsible for its content. This site is not maintained by or associated with Covered California, and Covered California bears no responsibility for its content. The email address and phone numbers that appear throughout the site belong to Goodacre Insurance Services, and cannot be used to contact Covered California.