Obamacare / Affordable Care Act Subsidy Calculator
Find Cheap Health Insurance Quotes in Your Area
Our Affordable Care Act (ACA) subsidy calculator can help you determine the amount your household could save on health insurance you buy through your state exchange. After you enter your ZIP code, age, household size and income, you'll learn your estimated subsidy for the current policy year and how much you'll pay for health insurance.
The amount of the subsidy your household may get depends on the number of people in your household and your household income as it relates to the federal poverty level.
Your health insurance estimated subsidy
Per person
Income vs. federal poverty level
0%
Your cost for a Silver plan
$0/month
Your cost without the subsidy
$0/month
What is an Affordable Care Act (ACA) subsidy?
The Affordable Care Act (ACA) subsidies are tax credits that allow you to pay less for a health insurance plan you buy from an ACA marketplace.
- How it works: When you use the subsidies, the cost of private health insurance is reduced based on the size of your family and your household income. Subsidies can be applied throughout the year to lower your monthly bill, or the lump sum can be taken as a deduction when you file income taxes.
- Who can sign up: Health insurance subsidies are available for those whose income falls in a certain range, depending on family size, and who buy insurance on HealthCare.gov or a state-run health insurance marketplace.
- Which insurance plans qualify: ACA subsidies can be used to lower the cost of insurance from any company, and the discount can be applied to four levels of coverage: Bronze, Silver, Gold and Platinum. They can't be used for the cheapest options: Catastrophic plans, Medicaid, the Children's Health Insurance Program (CHIP) or coverage offered by your employer.
Who is eligible for health insurance subsidies?
In 2023, you'll typically be eligible for ACA subsidies if you earn between $13,590 and $54,360 as an individual, or between $27,750 and $111,000 for a family of four.
For most people, health insurance subsidies are available if your income is between 100% and 400% of the federal poverty level (FPL). For the 2023 policy year, the federal poverty level income numbers below show the typical income limits to qualify for ACA health insurance subsidies.
Obamacare income limits for 2023
Household/family size |
Min. income to qualify
|
Typical max. income to qualify
|
|---|---|---|
| 1 | $13,590 | $54,360 |
| 2 | $18,310 | $73,240 |
| 3 | $23,030 | $92,120 |
| 4 | $27,750 | $111,000 |
| 5 | $32,470 | $129,880 |
- Those who earn more than these income limits may also qualify for subsidies when health insurance plans cost more than 8.5% of their income. For example, a 60-year-old who is quoted $800 per month for health insurance and who earns $60,000 would get a subsidy to reduce the plan's cost to $425 per month, or 8.5% of their income.
- Those who earn less than the federal poverty level aren't eligible for ACA subsidies, but they are usually eligible for Medicaid, which provides health insurance at cheaper costs than you can get with a marketplace subsidy.
How much does health insurance cost after ACA subsidies?
Among those who qualify for subsidies, the average cost of health insurance in the U.S. is $77 per month after the subsidies are applied.
However, rates vary based on income, and the cost for coverage can be as low as $0 per month. These low prices will be available through 2025 because of recent legislation.
Location | Average monthly health insurance cost after subsidies |
|---|---|
| United States | $77 |
| Alabama | $66 |
| Alaska | $77 |
| Arizona | $120 |
| Arkansas | $97 |
| California | $115 |
Calculating your subsidies
Before shopping for an ACA health insurance plan, you can estimate your health insurance costs by using the subsidy calculator or doing the math yourself. Knowing if you qualify for subsidies and the approximate amount can help you choose a plan that best fits your needs.
How much you might save depends on your income, your family size and the cost of a benchmark Silver plan where you live.
Subsidies are calculated in two ways:
- If you earn between 100% and 400% of the federal poverty level, you’ll qualify for a sliding scale discount in which how much you save is based on your income.
- If you earn more than 400% of the federal poverty level, you won’t pay more than 8.5% of your household income for health insurance, regardless of how much you earn.
You'll start by figuring out your income percentage compared to the federal poverty level. For 2023 health insurance plans, you'll use your estimated 2023 income and compare that to the 2022 federal poverty level amounts. For example, if you're single with an income of $27,180 per year, you're earning 200% of the federal poverty level.
Household size | Federal poverty level |
|---|---|
| 1 | $13,590 |
| 2 | $18,310 |
| 3 | $23,030 |
| 4 | $27,750 |
| 5 | $32,470 |
| 6 | $37,190 |
| 7 | $41,910 |
| 8 | $46,630 |
For a family of nine or more, add $4,720 for each extra person. Poverty levels are higher in Alaska and Hawaii.
The ACA limits the amount of money you spend on premiums based on how much you earn. Households with higher incomes pay a larger portion of their insurance costs, and those who have a lower income may qualify for free health insurance because the subsidy covers the plan's entire cost.
The percent of your income you pay for insurance, listed below, is based on recent federal legislation and will be used through 2025.
Your income as a % of federal poverty level | Min. % of income paid for insurance | Max. % of income paid for insurance |
|---|---|---|
| 100%-150% | 0% | 0% |
| 150%-200% | 0% | 2% |
| 200%-250% | 2% | 4% |
| 250%-300% | 4% | 6% |
| 300%-350% | 6% | 8.5% |
| 400% or higher | 8.5% | 8.5% |
Expected premium contributions based on earnings as a percentage of the federal poverty level. A benchmark plan is free if your income is at or below 150% of the federal poverty level.
Your health insurance discount is based on the cost of the second-cheapest Silver plan in your area, called a benchmark Silver plan. You can view available quotes in the federal or state insurance exchange to find the benchmark plan, or you can call the exchange.
If the amount you're expected to pay for health insurance is less than the cost of a benchmark plan, the difference between the two is the subsidy you'll get. For example, if the benchmark Silver plan costs $3,000 a year and you're expected to pay $1,000 for a plan, according to your income calculations, then you will get a subsidy of $2,000.
If your expected contribution for health insurance is more than the cost of a benchmark plan, you won't get any health insurance subsidies. However, you can still enroll in full-priced plans.
An individual earning $27,180 (two times the federal poverty level) is expected to contribute 2% of their income towards a typical health insurance plan. That amounts to about $544 for the year, or $45 per month.
If it costs $433 per month for a benchmark Silver plan where they live, they would get a subsidy of $388 per month to cover the difference. The $388 subsidy can be used toward the cost of any Bronze, Silver, Gold or Platinum plan.
For those who earn more than 400% of the federal poverty level, subsidies limit the cost of insurance to 8.5% of your annual income, regardless of how much you earn.
For example, a family of four with an income of $150,000, well over four times the federal poverty level, would pay no more than 8.5% of their income — or $12,750 per year — for an ACA benchmark plan. That's a monthly rate of about $1,063, which saves $262 compared to an average non-subsidized ACA plan that costs $1,325 per month.
When can you sign up for ACA subsidies?
You can sign up for a subsidized health insurance plan each year during the annual open enrollment period. However, if you have a qualifying life event , you may be eligible for a special enrollment period, which would give you one-time access to get coverage mid-year.
Examples of qualifying events include:
- Loss of health care coverage
- Changes in household
- Changes in residence
Do I have to pay back subsidies?
No, you don't have to pay back health insurance subsidies.
However, there may be an adjustment at tax time, when your actual income for the year is used to determine if you were receiving subsidies that were too large or too small.
Most people get premium subsidies in the form of an advance tax credit, with the subsidy applied directly to the cost of their monthly insurance bill. Since these amounts are based on your projected income for the year, the actual amount of subsidies you are eligible for may differ once you know your actual income earned at the end of the year.
- If you qualify for more subsidies than you got, the extra amount that you're eligible for is paid to you in the form of a tax credit when you file income taxes.
- If you got higher subsidies than you were ultimately eligible for, then you will have to repay some or all of the overage when you file your taxes.
Subsidy repayment limits for the 2022 tax year
Income range | Repayment cap |
|---|---|
| Under 200% of federal poverty level | $650 ($325 individual) |
| 200% to 299% of federal poverty level | $1,650 ($825 individual) |
| 300% to 399% of federal poverty level | $2,800 ($1,400 individual) |
| 400% and above | No limit |
If you qualify for a premium subsidy, you may also be eligible for another type of health insurance discount called a cost-sharing reduction. These programs help reduce out-of-pocket medical costs like deductibles and copays.
Frequently asked questions
Is Obamacare free?
Obamacare health insurance may be free for those earning close to the federal poverty level. That's because of a subsidy program that reduces the cost of insurance based on income. However, those who get subsidies typically pay an average $77 per month.
What are the income limits for health insurance subsidies?
To qualify for health insurance subsidies, you need to earn at least $13,590 as an individual or $27,750 for a family of four, which is the current federal poverty limit. Those who earn less can apply for low-income health insurance programs such as Medicaid or CHIP.
Who is eligible for Obamacare?
Most people who don't have health insurance through their job can buy an insurance plan through HealthCare.gov or their state health insurance marketplace. However, your income will determine if you're eligible for health insurance subsidies. Use our subsidy calculator to estimate your final cost for health insurance.
How much is Obamacare insurance?
The average cost of health insurance through Obamacare is $560 per month. For those with low to moderate incomes, subsidies can reduce the cost of health insurance, and those who qualify pay an average of $77 per month.
Sources and methodology
Costs and calculations are based on aggregated data from Public Use Files (PUF) on the Centers for Medicare & Medicaid Services (CMS) government website. Plans and providers for which county-level data was included in the CMS Crosswalk file were used in our analysis; those excluded from this dataset may not appear.
Other sources include HealthCare.gov, the U.S. Department of Health & Human Services and the Kaiser Family Foundation.