Financial Help Available
Through the Connect for Health Colorado Marketplace, you may qualify for financial help to lower your health insurance costs. Customers who qualify for financial help are saving an average of 80% on their monthly premiums.
If you are buying insurance on your own and are unable to get coverage through an employer or another source, depending on factors such as your household size and income, you may be eligible for one or both types of financial help available only through Connect for health Colorado:
- Premium Tax Credits help pay your monthly health insurance premium.
- Cost-Sharing Reductions lower the amount you pay when you receive care.
At a glance
Financial help available based on household size and annual income.
How do I know what kind of financial assistance I qualify for?
Estimate your financial help by using the chart above, look more closely by checking out our more detailed Income Guidelines, or get a quick estimate online in just a few minutes. (Note that you must complete a full application for financial help to get a final determination of your eligibility.) Typically:
- An individual with an income between $30,350 and $48,560 may qualify for Premium Tax Credits only.
- An individual earning between $16,147 and $30,350 may qualify for Premium Tax Credits AND Cost-Sharing Reductions.
- And an individual making less than $15,147 may be eligible for free or low-cost health coverage from Health First Colorado (Colorado’s Medicaid Program).
Premium Tax Credits
Premium tax credits help pay for your monthly health insurance plan payment. The amount of tax credit you may receive depends, in part, on the cost of plans in your area. When monthly premiums go up, so do the tax credits!
If your income and household size are within the ranges on the green graph above, you may qualify for a premium tax credit. It is your choice to take it monthly as a reduction on your health insurance payment or at the end of the year as one tax credit when you file your taxes.
See how much you could save! Get a quick estimate online in just a few minutes. We’ll ask you for an estimate of your annual Modified Adjusted Gross Income for the period that you will be covered by insurance.
Frequently Asked Questions about Premium Tax Credits
No. The only way you can receive a Premium Tax Credit is if you buy your health insurance through Connect for Health Colorado. Savings do not apply to catastrophic plans.
Your Premium Tax Credit amount will depend on your income, age, family size and the cost of health insurance plans available in your area.
If you would like to use some or all of your Premium Tax Credit in advance, that amount will be sent to your insurance company each month, and you will pay the rest of your monthly premium. Or you can wait and claim the tax credit when you file your federal income tax return.
Talk to us about applying only a percentage of your tax credit toward your monthly premium instead of the full amount. This will still lower your monthly payments, while also lowering your risk of having to pay money back later.
Call us right away since you may no longer be eligible for the tax credit. The sooner you call, the less likely you’ll owe money when you file your federal income tax return.
Changes can result in an increased tax credit or it could cause you to owe money to the IRS. Call us within 30 days so we can help adjust the amount of financial help you receive so you don’t have any surprises when you file your income taxes. If your family size goes down or your income goes up, call because you may get less of a tax credit and you don’t want to owe more money at tax time. If your family size goes up or your income goes down, call because you might get more of a tax credit! (And if your family size changes or if you have another qualifying Life Change Event, you may be eligible for a 60-day period to enroll in a new plan.)
Cost-Sharing Reductions are available for 2019. These are in addition to Premium Tax Credits for those with a low-to-moderate income. Cost-Sharing Reductions are subsidies designed to lower the amount you pay when you receive care by reducing the out-of-pocket costs such as copays, deductibles and coinsurance for covered healthcare services, as well as the out-of-pocket maximum. (Want a better understanding of what all these terms are? Read more here).
There are three different levels of discounts within the Cost-Sharing Reductions, which can be seen in the example above for an individual (household of one) with an income between $16,147 and $30,350. The lower your income, the bigger your discount. You must qualify AND purchase a Silver level plan to use these savings.
Frequently Asked Questions about Cost-Sharing Reductions
No. You must purchase a Silver level plan through Connect for Health Colorado to take advantage of Cost-Sharing Reductions.
There are three levels of Cost-Sharing Reductions based primarily on your family size and income. With the lowest level, you could pay as little as a few hundred dollars for an annual deductible, $0 for copays or coinsurance, as well as have a lower out-of-pocket maximum.
If your income makes you eligible for Cost-Sharing Reductions, when you apply for health insurance through Connect for Health Colorado, your Silver level plan options will automatically include lower copays, deductibles, coinsurance, and out-of-pocket maximum.
1. Create an account
2. Apply for financial help by filling out the eligibility information.
3. If you qualify for a tax credit, decide if you want to take all or part of it each month to offset the cost of your premium, or wait for one lump sum when you file your taxes.
4. Compare plans and select one that meets your needs. If you qualify for Cost-Sharing Reductions, select a Silver level plan and the savings will automatically be applied.
5. Purchase your plan!
6. Pay your monthly premium on-time, every month directly to your health insurance company.
Explore our health insurance resources
Health Insurance can be confusing. Check out our resources below to get comfortable using your health insurance.