how do I get the subsidy for health insurance

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    Here's how the Obamacare subsidy works:
    The subsidy for health insurance is technically a tax credit, which would normally come on your returns each year. However, since many low- and middle-income families can’t afford to pay insurance premiums without help upfront, this credit works differently.
     
    Instead of applying when you file your taxes, you can apply for this tax credit when you sign up for insurance, if you’re eligible. The government will calculate how much is owed in the tax credit, and the amount will be paid directly to the insurance company. Then, you only need to pay the remaining portion of the premium (normally paid out in monthly installments) to the insurer.
     
    If you choose to apply for the subsidy/credit when you file your taxes, this will be a refundable credit. If you can afford to pay your health insurance premiums throughout the year you may take that route, in which case the subsidy will first pay down any taxes you have due, and whatever is left over will be distributed as a tax refund.       
    • I read in several reports that people will be asking for the subsidy on the "honor system",; i.e.,if those newspaper articles are correct, then income will not have to be verified to get the subsidy.   Since the unverified subsidies are paid to the insurance companies in advance,  I presume that at the end of the year when they prepare their taxes, some will have to pay back any subsidy that was overpaid on their behalf.    Does that sound correct?   I presume some people that fall into that situation will be shocked when they don't get a refund and actually have to pay back some of their subsidy as tax due.
    • That is the general idea however the actual forms and procedures are not finished yet it's a wait & see, live & learn type of situation.
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    It is important to note the difference between the Premium Assistance Credit and Cost-Sharing Subsidies benefits. These are two different types of assistance one may receive under the ACA.

    The Premium Assistance Credit is an amount that qualified individuals can use to offset premiums for insurance.  An advance of the credit is used monthly to offset the premium to be paid by the insured.  The amount of credit is calculated at the time the insurance is purchased through the exchange.

    The Cost-Sharing Subsidy is a different benefit.  These generally apply only to qualified individuals who purchase a silver-level plan.  Further, the subsidy doesn't apply to premiums, but to deductibles, copayments, and coinsurance amounts.  The subsidy amount will be determined when the plan is purchased.

    Please visit https://www.healthcare.gov/what-is-the-health-insurance-marketplace/ to see how you can sign up for insurance.
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