Many Americans may qualify for some type of subsidy in form from tax credit  or directly federal payment to pay for  health insurance premium in Brentwood and the rest of California in 2014 , if they join the health care exhange. Not only low- income families but also moderate-income families earning up to 400 percent of the Federal Poverty Level will receive subsidies. ( For a family of four that is $ 92,200 ). Eligibility of subsidies will depend on your income, age, the size of your household and where you live. Your eligibility based on the modified annual gross income ( AGI ), which you can find on line item # 37 of your tax return of 2012. Please check with your CPA on your modified annual gross income, and make sure to pay extra when issuing your 2012 tax return, as you can save significant money if you fall in the federal subsidy category.

The Kaiser Family Foundation has created the Health Reform Subsidy Calculator, which easily shows whether you will qualify for a subsidy. It is estimated that, if you qualify for a federal subsidy  the premium will be  7 -10 percent lower as in the individual market today. But if you do not qualify, you  will  see higher insurance premiums, as the subsidy calculator shows the actual health insurance premium based on a Silver Tier . I encourage you to  use this important tool from the Kaiser Family Foundation to estimate your cost.

For example a family of 4 being 40 years old  with a modified annual gross income of $ 60,000 , the annual health insurance premium will be $ 12130 . The family has to pay $ 4937 , the federal government will subsidy $ 7193 in form of a tax credit or as a direct payment to  the insurance. ( all on a medium cost factor region )

For a Single male 20 years old, with  modified annual gross income of $ 25,000 the annual health insurance premium will be $ 3,391 . He will have to pay annually $ 1726 for health insurance and the subsidy will be $ 1664. ( based on a medium cost factor region )

As an example, a 50 year single woman who earns $ 50000 will not be eligible for a subsidy. Her  insurance cost  will be almost $6950.- annual on the Silver plan, which is considerably higher than on current individual markets.

The subsidies are not available for employees who receive insurance through their employers. For groups of 50 employees and more, one can go to the exchange if  the employer insurance package is higher than 9.5% of  the employee’s annual income .

For question how the health care exchanges work  read our the following blog., or do not hesitate to contact your health care exchange specialist for Brentwood, Santa Monica,  West Los Angeles and the rest of California.