Anyone who gets their Health Insurance through the government Healthcare Exchange may want to take note of some changes for 2021 and 2022:
ARP made changes to the healthcare income limits for the subsidy.
It has changed, but unfortunately there is no magic table to look at anymore.
The reason is because they have eliminated the “SUBSIDY CLIFF”
The Subsidy Cliff meant that anyone with Modified AGI over 400% of the Federal Poverty Level was not qualified for ANY premium subsidy (hence the Cliff!)
Under the ARP, the Cliff goes away.
Now, anyone whose Modified AGI is over 400% of the federal poverty level cannot pay more than 8.5% of that AGI in healthcare premiums.
This is for the tax years 2021 and 2022.
If you would like some additional information regarding your own tax situation give us a call!