How to Apply for Financial Assistance for Health Insurance Premiums

Health insurance plans are always expensive, and low-income households may not be able to afford them. Hence, there is a need to support those within the federal poverty range to enable them afford quality healthcare and that’s where financial assistance for health insurance premiums or health insurance subsidies come in. 

There are different financial assistance programs for health insurance premiums, like Medicare,   the Children’s Health Insurance Program (CHIP), medicaid, etc. Each of these programs is targeted at a particular group of people, both old and young, who are low-income earners or have special medical needs. 

Applying for financial assistance for health insurance premiums is not difficult since it only involves a few steps, and you can also complete the application process online without leaving your comfort zone. However, to successfully apply for a health insurance subsidy, you need to meet certain requirements, like purchasing your health insurance plan through the healthcare marketplace or meeting the federal poverty guidelines, among others. We are going to shed more light on the application process and other related aspects of this article as we proceed with our discussion.

What is the difference between health insurance and health insurance premiums?

Health insurance is an agreement or contract between an insured (policyholder) and the insurance provider that offers financial coverage for healthcare expenses. The insurance company will take care of all or part of the medical bills of the policyholder, depending on the coverage options, and the insured will, in return, repay the insurance provider on a monthly basis. 

While

Health insurance premiums are the amount of money that you pay in advance or monthly to keep your health insurance plans active. The health insurance premiums serve as the lifewire of your insurance plan because once you stop paying them, your health insurance coverage will be terminated. 

Who is Qualified to Apply for Financial Assistance for Health Insurance Premiums?

Before you can apply and get financial assistance for health insurance premiums, there are some requirements that you must meet. These criteria are listed below:

• You must purchase your health insurance plan via the healthcare marketplace
• You must be living in the United States legally.
• You must be a low-income earner and meet the federal poverty guidelines
• If your employer is not providing affordable healthcare insurance for you through Medicaid, Medicare, etc., you are qualified for a health insurance subsidy.

Available Financial Assistance Programs for Health Insurance Premiums

There are different kinds of health insurance subsidies for those who qualify for the financial assistance for health insurance. Each of these financial aid for health insurance programs is designed to accommodate a certain range of people based on family size, age, location, income, etc. The programs are detailed below:

1. Medicare Health Insurance Subsidy

This is a US federal health insurance program that caters for the elderly who are 65 years and older. The Medicare also covers young people living with disabilities and people with Lou Gehrig’s disease.

2. Medicaid Health Insurance Subsidy

This is another health insurance subsidy program. It is managed by different states in the US and regulated by federal policies. It covers primary and severe healthcare services. 

3. Children’s Health Insurance Program (CHIP)

This health insurance program provides healthcare coverage for children who are living with families that don’t qualify for Medicaid because they are earning above the federal poverty range. 

4. Premium Tax Credits

This covers health insurance premiums for households that earn more than 400% of the federal poverty level and initially didn’t qualify for health insurance subsidies. There was a rule that prevented those within this category not to access insurance health care subsidies, but it is suspended for 2021 to 2025.

5.Cost-Sharing Reductions

This is also called ‘’extra savings”; it is a health insurance subsidy program that is designed for health policyholders who bought their insurance plan from the state or federal Marketplace. This cost-sharing reduction reduces your deductibles as a policyholder.

How to Apply for Financial Assistance for Health Insurance Premiums

Applying for financial assistance for health insurance premiums is not difficult; kindly follow the steps below to start your application.

• Visit the health insurance financial assistance at the health insurance marketplace
• Once logged in, click on ‘’Apply for Coverage’’
• Now provide the necessary documents to support your claims, like your social security number, immigration status, household income, citizenship, and Alaskan Native or American Indian status, if applicable.

For further information on the relevant supporting documents that you will need to provide when applying for healthcare insurance subsidies, kindly visit healthcare.gov.

• Once you are done uploading the supporting documents, you can submit your application. 
• After submitting your application, wait for review; if it is approved, the government will send the money to the appropriate designation you chose during application.

How Much Can You Receive as a Health Insurance Subsidy?

The amount of money that you will receive for health insurance premiums is not fixed; it is dependent on your household income when compared with the federal poverty level. However, one of the factors that plays an important role in the amount of financial assistance that you will receive for health insurance subsidy is the amount of money that you ought to contribute to be able to pay for your health insurance plan and the exact amount of money that you need to receive to enable you to meet the mark. Generally, the lower your income, the greater the likelihood that you will receive a large amount of money.

According to the Centres for Medicare & Medicaid Services (CMS), the average health insurance subsidy that you can receive irrespective of your state ranges from $200 to $900 monthly. 

The formula that you can use to calculate the amount of money that you can receive as a health insurance subsidy monthly is: expected health insurance cost contribution minus benchmark health cost plan. Kindly use the calculator at KFF.org. 

Different Methods you can Use to Receive your Health Insurance Financial Aid

There are many available methods that you can use to receive your health insurance financial aid when approved, depending on the health insurance premiums program you used. The methods are discussed below:

1. Health Insurance Company

For those who received their health insurance subsidy or premium tax credit in advance, the government will send the money to their health insurance company. The fund will be channelled towards your overall health insurance costs, which will definitely reduce the amount you owe monthly.

2. Tax Credit

This is another method that you can use to receive your health insurance financial aid. It is for those who don’t opt for their health insurance subsidy to be used to pay for the health insurance coverage. If you follow under this category, you will receive your financial aid as tax credit in the following year.

3. Immediate Disbursement

This is the last method on our list that you can use to receive your health insurance financial aid. You can decide to receive your health insurance subsidy immediately, and part of it will be disbursed to you instantly once it is approved, while the remaining one will be sent to you when you apply for taxes.

Conclusion

You can apply for financial assistance for health insurance premiums by visiting the official federal government website and uploading the supporting documents, like social security number, immigration status, household income, citizenship, etc. The application process is simple, and once your application is approved, you are going to get health insurance financial aid from the government, and the money will be sent to your chosen destination. However, don’t forget that you must meet the eligibility criteria before you will be able to get a health insurance subsidy.