Health insurance lets you live in the moment – ​​InsuranceNewsNet

Nearly 700,000 Idahoans obtain health insurance through their employer; their employer covers most of the cost of the monthly premium for them. However, many companies are not financially able to extend this benefit to employee families. With the high cost of health insurance, this leaves families without health insurance and without access to health care.

In 2010, early premium tax credits were introduced to make health insurance affordable for most Idahoans. Unfortunately, due to a Internal Revenue Service interpretation, many families still do not have access to affordable insurance. This problem is known as the “family problem”. If the employee’s coverage was deemed affordable, no one in the household was eligible for a tax credit from the state’s insurance exchange, Your Health Idaho, regardless of the cost to cover their family. The problem with the policy is that affordability is determined solely by the cost of coverage for the employee, not for the whole family. In many cases, this means families are forced to choose between paying rent and buying food or providing their family with health insurance.

The good news is that the problem is being fixed. From 2023, affordability is now determined separately for the employee and as a family. If the monthly premium of the employee or the whole family is more than 9.12% of the household income, he can benefit from a tax credit. For example, a married couple who $40,000 per year may have a monthly bonus reserved for employees of $100while the monthly premium for the combined couple is $350. The cost for the employee alone is considered affordable, but the combined cost is unaffordable, meaning their spouse may be eligible for a tax credit. If a family of four has an annual income of $60,000the employee’s monthly premium is $75 and the monthly premium for the whole family is $475, the salary bonus is considered affordable where the family bonus is not. Family members can benefit from a tax credit.

What does this really mean for the people of Idaho? More people will now have access to affordable, quality health coverage, and many may even qualify for a tax credit for the very first time.

If all of these numbers are overwhelming, Your Health Idaho’s application process does the math for you. The application for insurance and tax credit is made at the same time, on the same application. If you are unsure when you can register or if you are eligible for a tax credit, Customer Advocates are ready to answer questions and can be reached at 855-944-3246 or YourHealthIdaho.org.