Thanks to subsidies from the federal government, which will help pay for health insurance on state-based exchanges starting in 2014, many low- to moderate-income Americans will get a break on their premiums.
The Kaiser Family Foundation estimates that 48% of Americans who buy individual insurance today would be eligible for subsidies. They would receive an average of $5,548, which would cover 66% of the price.
"The subsidies are pretty large for the people who get them," said Gary Claxton, vice president at the foundation, noting that a larger share of new enrollees in the individual market will be eligible for subsidies since they are likely to be lower income Americans who cannot not afford coverage now.
Here's how you qualify:
Your income: Anyone earning up to 400% of the poverty line will be eligible for a subsidy, which is up to $45,960 for an individual and $94,200 for a family of four.
The lower your income, the larger your subsidy. For instance, those making $17,235 a year will pay no more than 4% of income, or $57 a month, while those with incomes between $34,470 and $45,960 will pay a maximum of 9.5% of income, or $364 a month. The federal government will cover the rest.
Anyone earning more than $45,960 would be responsible for the entire tab on the Obamacare health plan of his choice.
In addition to premium subsidies, those making less than 250% of the poverty line, or $28,725 for a single person and $58,875 for a family of four, are eligible for extra subsidies to defray out-of-pocket costs, such as deductibles and co-payments.
While the subsidies will certainly help, many folks may still think Obamacare is pretty pricey.
"For a lot of people who are barely making the rent and struggling to pay for groceries, even a very modest premium can seem out of reach," said Sabrina Corlette, senior research fellow at Georgetown's Health Policy Institute.
To see how large a subsidy you might receive, check out Kaiser's calculator.
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