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Health Reform Subsidy Calculator A New Online Tool

By April 2, 2010

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The Kaiser Family Foundation has provided an interesting online tool that illustrates how a government subsidy may help you pay your health insurance premiums. The calculator is based on the requirements of the Patient Protection and Affordable Care Act signed into law on March 23, 2010 by President Obama.

The calculator illustrates what your premium and level of government assistance might be. The information applies to people under age 65 who buy their own health insurance through one of the planned health exchanges and do not have a health plan through an employer, Medicare or Medicaid.

Although the ability to buy insurance in an exchange will not be available until 2014, this tool will allow you to get a sense of the premium and subsidy differences depending on your income, the size of your family, and where you live.

The tool comes with a number of caveats, so it is important to read the directions that come with the calculator. I ran some numbers for some people I know.

Some Examples

My friend Jerry is 51, married, and has two teenage children. He is self-employed and buys his own health insurance for the family. His yearly income is $74,000 and he lives in a high cost area. Based on this information, his total health insurance premium is $15,269 of which, he would pay $7,030 and the government would pay $8,239.

A woman I met at our local food bank works two part-time jobs and has no health insurance. She is 32, not married and has no children or dependents. Last year her income was 23,450. Based on this information, her total health insurance premium is $3,363 of which, she would pay $1,613 and the government would pay $1,750.

Check it out: Health Reform Subsidy Calculator - Premium Assistance for Coverage in Exchanges

What do you think? Please leave a comment below or in the Health Insurance Forum.

To stay up to date on health insurance issues get Dr. Mike's Health Insurance Newsletter.

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