2018 2019 2020 Federal Poverty Levels (FPL) For Affordable Care Act (ACA)

People who don’t have health insurance from work can buy health coverage under the Affordable Care Act, also known as Obamacare. The premiums are made affordable by a premium subsidy in the form of a tax credit calculated off your income relative to the federal poverty levels (FPL), also known as HHS poverty guidelines.

You qualify for the premium subsidy only if your modified adjusted gross income (MAGI) is at 400% FPL or below. If your MAGI goes above 400% FPL even by $1, you lose all the subsidy. See Stay Off the Obamacare ACA Premium Subsidy Cliff.

Modified Adjusted Gross Income for Obamacare is basically your gross income minus above-the-line deductions, plus tax-exempt muni bond interest, plus untaxed Social Security benefits. In order to see if you qualify for the premium subsidy, you have to know where the FPL is.

In addition to the maximum income to receive the premium subsidy, there’s also a minimum income to get accepted by the ACA marketplace. If your estimated income is too low, the ACA marketplace won’t accept you. They send you to Medicaid instead. In 32 states plus Washington, DC that expanded Medicaid, the minimum income is 138% FPL. In states that didn’t expand Medicaid, the minimum income is 100% FPL. Here’s a map showing which states expanded Medicaid and which stated did not: Current Status of State Medicaid Expansion Decisions, Kaiser Family Foundation.

Here are the numbers for coverage in 2018, 2019, and 2020. They increase with inflation every year in January. These are applied with a one-year lag. Your eligibility for a premium subsidy for 2019 is based on the FPL number announced in 2018. The new number announced in 2019 will be used for coverage in 2020.

There are three sets of numbers. FPLs are higher in Alaska and Hawaii than in 48 contiguous states and Washington DC.

48 Contiguous States and Washington DC

Number of persons in household2018 coverage2019 coverage2020 coverage
moreadd $4,180 eachadd $4,320 eachadd $4,420 each


Number of persons in household2018 coverage2019 coverage2020 coverage
moreadd $5,230 eachadd $5,400 eachadd $5,530 each


Number of persons in household2018 coverage2019 coverage2020 coverage
moreadd $4,810 eachadd $4,970 eachadd $5,080 each


Say No To Management Fees

If an advisor is charging you a percentage of your assets, you are paying 5-10x too much. Learn how to find an independent advisor, pay for advice, and only the advice: Find Advice-Only.

2018 2019 2020 Federal Poverty Levels (FPL) For Affordable Care Act (ACA) is copyrighted material from The Finance Buff. All rights reserved.

Main Source
Author: Harry Sit

You might also like More from author

Comments are closed.