When starting the application, you should indicate that you are interested in receiving financial help to lower the cost of health insurance. Connect for Health Colorado will determine your eligibility based on income, household size, and a few other factors.
If you qualify, you can choose to receive the Premium Tax Credits in one of two ways:
(1) Claim some or all of the tax credit in advance, which means the credit will go directly to the insurance company to lower your monthly premium.
(2) Receive the tax credit in a lump sum when you file your taxes.
Eligibility for Premium Tax Credit is based on your household’s estimated gross income for the year during which you are receiving the credit. If you overestimate or underestimate your income and receive more or less tax credit than you were actually eligible for, the difference will be reconciled by the IRS when you file your federal income taxes. For this reason, it is important to report changes in income, household size and address to Connect for Health Colorado.