5 Things You Need to Know About Cost Share Reduction Plans
- What are Cost Share Reduction plans?
Cost Share Reduction Plans are health insurance plans that the government enhances to lower out-of-pocket costs. If you qualify, the government offers enhanced Silver level plans that decrease your out-of-pocket maximum, as well as reducing co-pays and deductibles. North Carolina Cost Share Reduction plans are only available to individuals or families who qualify based on income.
- Are cost share reduction plans different from subsidies?
There are two different types of subsidies available on the health care exchange in North Carolina. Both Cost Share Reduction and premium tax credits are Obamacare subsidies available to families who fall within household income limits.
- Cost share reduction plans help reduce the cost of health care services themselves, such as doctor visits, deductibles, and out-of-pocket maximums.
- Premium tax credits are a more well known type of subsidy that help pay for the monthly cost, or premium, of an insurance plan.
- How do I know if I qualify for cost share reduction plans?
Subsidies are available for families who fall within household income limits. In North Carolina, subsidies vary and are based on
- annual household income
- family size
- Federal Poverty Level (FPL)
Cost share reduction health insurance subsidies are available to families who make less than 250% of the Federal Poverty Level (FPL), or $60,625 for a family of four. Premium tax credit subsidies are available to families whose annual household income is within 400% of the FLP, which equals $97,000 for a family of four.
North Carolina Obamacare Subsidy Chart
Minimum Income Levels for North Carolina Obamacare Subsidies
Minimum Income Levels for North Carolina Obamacare Subsidies
| 2016 Federal Poverty Guidelines | |||
| Family Size | 100% | 250% | 400% |
| 1 | $11,770 | $29,425 | $47,080 |
| 2 | $15,930 | $39,825 | $63,720 |
| 3 | $20,090 | $50,225 | $80,360 |
| 4 | $24,250 | $60,625 | $97,00 |
| 5 | $28,410 | $71,025 | $113,640 |
| 6 | $32,570 | $81,425 | $130,280 |
| 7 | $36,730 | $91,825 | $146,920 |
| 8 | $40,890 | $102,225 | $160,360 |
Annual Household Income as a percentage of the Federal Poverty Level
- How much do cost share reduction plans cost?
Cost Share Reduction plans are only available with Silver Obamacare plans. While the cost is very affordable, it does vary depending on your household income and the size of your family. Contact us to find out how much these plans will cost for your family!
- How do I enroll for a cost share reduction insurance plan in North Carolina?
Cost share reduction plans are only available on the health insurance marketplace at healthcare.gov. You can purchase them by yourself online, but many people in North Carolina choose to get help from an experienced, licensed health insurance agent.
The online application process on healthcare.gov can be difficult and confusing, but a licensed North Carolina insurance agent can help you enroll correctly. At Carolina Insurance Professionals, we are here to answer your health insurance and subsidy questions and walk you through the Obamacare process, at no cost to you. Contact us today to learn how you can take advantage of your subsidy options and enroll for affordable North Carolina health insurance.