Is your Health Insurance plan “Unaffordable"? Are you exempt from the tax penalty?

To determine if your plan is unaffordable, you must compare your plan to the cheapest plan (bronze) after all subsidies have been applied, and that amount must be more than 8% of your MAGI “Modified Adjusted Gross Income” (visit website for definition) of your household income.

http://nevadainsuranceenrollment.com/health-insurance-plan-unaffordable-need-exemption/

So we start with your household MAGI.  Then we do the math to determine the person’s expected premium amount. Then we determine the subsidy (based on the 2^nd lowest cost silver plan) and apply that subsidy to the cheapest bronze plan available.  Then we compare the subsidized bronze plan premium to 8% of the person’s household MAGI.  If the plan costs more, then it is “unaffordable,” and the person qualifies for an exemption (no tax penalty).  If the plan costs less, then it is “affordable” and no exemption will be granted.

Example:

Family of 4 who’s household annual MAGI is $37,000

8% x $37,000 = $2,960

$2,960 / 12 months = $246.67 per month

2^nd Lowest Silver Plan for all 4 is $400 (hypothetical)

APTC = $400 - $246.67 = $153.33

Lowest Cost Bronze Plan for all 4 = $300 (hypothetical)

$300 - $153.33 (APTC) = $146.67 monthly premiums

$146.67 < $246.67 so the plan is affordable and the family gets no exemption.

  

As always, if you have questions, we are here to help. You can call us at (702) 898-0554 or visit us online:  http://nevadainsuranceenrollment.com/

Thank you for considering Nevada Insurance Enrollment Marketplace for your health insurance needs.

Sincerely,

Shelly Rogers

Nevada Insurance Enrollment Marketplace
Licensed Agent #560016

Phone: (702) 898-0554

Toll Free:  1 (888) 600-0554

E-mail:   Shelly@NevadaInsuranceEnrollment.com
Visit our website for more great information:  http://nevadainsuranceenrollment.com/



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