Do You Qualify for a Lower Health Insurance Premium?
While having a comprehensive health insurance plan can ultimately save you thousands of dollars, it can turn out to be a big monthly expense. On average, without a government subsidy health insurance plans in Nevada cost between $160-$2,200 per month (or more) and for many, this expense is a burden. Fortunately, financial assistance is available to those who qualify, making health insurance more affordable and quality coverage more accessible for everyone.
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What Is an Advance Premium Tax Credit?
An advance premium tax credit is a special tax credit that you can take to help lower the cost of your monthly health insurance premiums. When you sign up for health insurance coverage in the Health Insurance Marketplace, you provide an estimate for how much income you expect to bring in for that year. Based on that amount, you may qualify for a premium tax credit. Instead of receiving that tax credit on your federal tax return, you can use any amount of the credit in advance to lower your monthly health insurance premium.
If you make more money than you estimated when applying for health insurance coverage and you take a bigger tax credit than you qualify for, then you may have to pay some of that tax credit back. If you make over 400% of the Federal Poverty Level, you’ll pay the entire subsidy back. On the other hand, if your income is lower than you’d projected and you took a smaller credit than you’re entitled to, you’ll get the difference in tax credit back when you file your taxes.
How Premium Tax Credits Can Save You Money
Premium tax credits reduce how much money you have to pay monthly for your health insurance plan. If you qualify for this credit, you have two options for using it.
Your first option is to have the federal government pay the credit directly to your health insurance carrier each month. Then, each month, you just have to pay the remaining premium. Your second option is to get the tax credit when you file your federal income taxes. With this option, you pay the full premium each month and get the credit in a lump sum on your tax return. Then, you can use the tax credit toward any qualified health plans that have been purchased through Nevada Health Link only.
Eligibility Requirements for the Advanced Premium Tax Credit
The American Recue Plan Act ensures that all households including those who earn more than 400% of the federal poverty level, can receive a premium tax credit if the cost of the “benchmark plan” (2nd lowest cost Silver plan in Nevada) would otherwise amount to more than 8.5% of the household income. Also, you don’t qualify for a subsidy if you have Medicaid, have insurance offered through a parent, spouse, or employer, VA, CHIP, or others. This may change in the future. In addition, you must file taxes and reconcile your taxes each year.
The advance tax credit can be applied to the monthly premium of any qualified health insurance plan purchased through Nevada Health Link. We recommend calling one of our highly qualified licensed agents for assistance. There are several risks you are taking approaching it alone. Having one of our brokers assist you will cost you nothing as the insurance companies compensate brokers and your premium does not increase by using an agent/broker. It’s a true win win.
Getting Affordable Health Insurance with Nevada Insurance Enrollment
Figuring out how to find the best health insurance coverage is challenging. Health insurance agents from Nevada Insurance Enrollment specialize in helping clients find the best coverage for their needs and determining how to get the lowest premium.
Read More: Health Insurance in Las Vegas, Nevada
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