The ACA provides premium subsidies to encourage low-income individuals to enroll in the health insurance exchanges. The subsidies are refundable, advanceable premium tax credits for individuals and families with income between 100 and 400 percent of the federal poverty level (FPL). This stan- dard means that the subsidy is handled through the tax code. If one is eligible for a subsidy of say, $1,000, then one gets a credit of $1,000 toward one’s income tax liability. The credit is refundable, meaning that even if you did not owe $1,000 in taxes, you would still get the $1,000 credit.

The obvious problem with this is that you need to buy coverage in the open enrollment period, but would not get the credit until you filed taxes for that year. That is why the credit is advanceable, meaning that the insurance exchange will use data provided by you to estimate the credit and then use that estimate to reduce the premium by the appropriate amount. When you file income taxes you would report actual income and the precise amount of the subsidy would be calculated. You may get a bigger credit (i.e., a refund) or you may have been given too big a credit, so you would owe the government money for the excess amount. In any event, the ACA allows eligible people to receive their subsidy at the point they are buying coverage in the exchange.

Don't use plagiarized sources. Get Your Custom Essay on
Just from $13/Page
Order Essay


The ACA defines the maximum amount one must pay for health insur- ance as a percentage of one’s income. The difference between the price of the second-cheapest silver plan and the maximum one is obligated to pay is the size of the subsidy. This statement sounds more complicated than it is.

The maximum one must pay for health insurance depends on one’s income.

• 100–138 percent of the FPL: Maximum payment of 2.0 percent of income

• 138–150 percent of the FPL: Maximum payment of 3.0–4.0 percent of income

• 150–300 percent of the FPL: Maximum payment of 4.0–9.5 percent of income

• 300–400 percent of the FPL: Maximum payment of 9.5 percent of income

There is no subsidy for people with incomes below 100 percent of the FPL. This was because the Congress intended that people with incomes below this level would be covered by the Medicaid expansion. As we will see later in the chapter, when the Supreme Court made the Medicaid expansion optional for the states, this created a group of people who were not eligible

Academic Heros
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

Our writers are encouraged to read and research widely to have rich information before writing clients’ papers. Therefore, be it high school or PhD level paper, it will always be a well-researched work handled by experts.

Professional and Experienced Academic Writers

For one to become part of our team, thorough interview and vetting is undertaken to make sure their academic level and experience are beyond reproach, hence enabling us give our clients top quality work.

Free Unlimited Revisions

Once you have received your paper and feel that some issues have been missed, just request for revision and it will be done. In addition, you can present your work to the tutor and he/she asks for improvement/changes, we are always ready to assist.

Prompt Delivery and 100% Money-Back-Guarantee

All our papers are sent to the clients before the deadline to allow them time to review the work before presenting to the tutor. If for some reason we feel our writers cannot meet the deadline, we will contact you to ask for more time. If this is not possible, then the paid amount will be refunded.

Original & Confidential

Our writers have been trained to ensure work produced is free of plagiarism. Software to check originality are also applied. Our clients’ information is highly guarded from third parties to ensure confidentiality is maintained.

24/7 Customer Support

Our support team is available 24 hours, 7 days a week. You can reach the team via live chat, email or phone call. You can always get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

You have had a hectic day, and still need to complete your assignment, yet it is late at night. No need to panic. Place your order with us, retire to bed, and once you wake up, the paper will be ready.


Essay Writing Service

It does not matter the urgency of your paper, or the academic level, our team is ready to help you 24/7. Just contact us and all your academic needs will be sorted.


Admission Essays & Business Writing Help

A student is often required to write an admission letter requesting to be admitted in a certain institution. For you to be gain that admission in your dream institution, you must write a convincing letter. You can depend on our team for the best admission letters.


Editing Support

Academic writing is not just about getting information and throwing it all over. Our team will ensure you have a polished paper that is coherent and has a good flow of information. We also ensure the paper follows the correct formatting styles like APA, Harvard, MLA, Chicago/Turabian.


Revision Support

If our writers write a paper but you are not satisfied in one way or another, you can always ask for revision. This is totally free. Our writers and editors will revise your paper untill you are be totally satisfied. We as well offer revision for papers not done by our writers at a small fee.