The Affordable Health Care Act will provide financial assistance for some people who buy plans on the market places known as “exchanges” for plans effective January 1, 2014.
Cost sharing subsidies can substantially reduce the deductibles, co-payments, co-insurance, and total out of pocket spending limits for people with incomes up to two hundred fifty percent of the poverty level ($58,875 for a family of four in two thousand thirteen). These reductions can be an important consideration for lower income consumers when choosing their coverage.
Cost sharing reductions will be applied automatically for consumers based on their income if they buy a Silver Level plan. Silver plans are one of four plans that will be sold on the exchanges. A Silver Plan will generally pay seventy percent of covered medical expenses. In California, a standard Silver Plan will have a $2,000 deductible, and have a $6,400 maximum out of pocket limit. In addition, people with incomes up to two hundred fifty percent of the poverty level will qualify for premium subsidies as well, based on that income level.
Consumers should remember, the cost sharing subsidies apply to in-network expenses only.
