The Affordable Care Act creates advanceable, refundable premium tax credits to individuals and families with incomes up to 400% of the Federal Poverty Level and cost-sharing subsidies for people earning less than 250% of the Federal Poverty Level. The FPL numbers are announced every January by HHS. Here’s the FPL chart for 2017 for various income levels.
Here are the monthly premiums people would pay at varying income levels and family sizes for the benchmark plan – the second-lowest-priced silver-level plan in the individual marketplace. The government will pick up any remaining amount and the advance tax credit will be paid directly to the insurance company by the IRS. [Based on 2013 numbers]
Beginning in 2014, ACA-compliant small group plans are limited to 3 to 1 age bands. A 21-year-old’s rate is set at 1.000, and all other employees and dependents are charged based on a factor of that rate. The standard age curve applies to the individual market as well.