Learn how Sarah has a zero monthly premium healthcare plan.

 

Believe it or not, it is possible to find health insurance plans with zero monthly premiums thanks to the Affordable Care Act (ACA) and its premium subsidies. These subsidies, also known as Advanced Premium Tax Credits (APTCs), can significantly reduce your monthly cost, potentially bringing it down to $0. Let's dive into an example to see how it works:

Meet Sarah

Sarah is a single 30-year-old living in Margate, Florida. She works part-time at a local bookstore and earns around $2,500 per month. Sarah doesn't currently have health insurance and would like to explore her options under the ACA.

Checking Income Eligibility

The first step is to see if Sarah falls within the income range to qualify for premium subsidies. The federal poverty level (FPL) is used as a benchmark. In 2024, the FPL for a single person in the continental US is around $13,590 annually. This means Sarah's monthly income falls at about 18% of the FPL.

Subsidy Power

The ACA offers a sliding scale for premium subsidies. Generally, individuals with lower incomes receive a higher percentage of their premium covered. With Sarah's income, she's likely to qualify for a significant subsidy.

Enrollment Time

The next step is for Sarah to enroll during the Open Enrollment period (typically November through January) or a Special Enrollment period if she qualifies due to a life event. Click here to see if you qualify for a special enrollment period.

Plan Selection

Based on Sarah's income, and the amount of the premium subsidy applied. She might see some Silver plans (a mid-range metal tier in the ACA marketplace) with a monthly premium of, say, $200. However, with the subsidy applied, her monthly cost could be reduced to $0!

If you are in need of healthcare and would like to see if you qualify for a premium subsidy click here to start your free consultation