Ways to Save Money on Obamacare

Alaska Obamacare

Ways to Save Money on Obamacare

Obamacare > Ways to Save Money on Obamacare > Alaska

Ways to Save Money on Obamacare

Under the Affordable Care Act (ACA) in Alaska, you may be able to reduce your health insurance through tax credits or, if your income is very low, by qualifying for Medicaid.

Many people who apply for coverage at the Alaska exchange will be eligible for some form of financial assistance. Read on to learn more about your options.

Who Qualifies for Obamacare Tax Credits?

If you are under age 65 and not eligible for job-based health coverage or Medicaid, a tax credit -- called the Advance Premium Tax Credit -- may help you pay your monthly premiums.

The tax credit is available for those whose annual income is between 100% and 400% of the federal poverty level, meaning: 

  • $15,060 to $60,240 for individuals
  • $20,290 to $81,160 for a family of 2
  • $25,520 to $102,080 for a family of 3
  • $30,750 to $123,000 for a family of 4
  • $35,980 to $143,920 for a family of 5
  • $41,210 to $164,840 for a family of 6
  • $46,440 to $185,760 for a family of 7
  • $51,670 to $206,680 for a family of 8

These amounts are based on the federal poverty level for Alaska in 2017.

If you qualify, you won’t have to wait until tax time to claim your credit. It can be sent directly to your insurer to immediately lower your premiums.

These tax credits remain available for 2018 insurance plans even though the Trump administration has decided to end a second type of subsidy that has been paid directly to insurers.

Your final eligibility for tax credits will be determined when you apply for a health plan at HealthCare.gov.

Trump Has Ended Obamacare Cost-Sharing Subsidies

On October 12, 2017, the Trump administration decided to end a second type of Affordable Care Act subsidy, called "cost-sharing reductions" or CSRs. Since the health insurance marketplaces opened in 2013, these subsidies have been paid directly to insurers, allowing them to reduce deductibles and co-payments for people with incomes between 100% and 250% of the federal poverty level.

The long-term effects of this decision are as yet unclear. Many health care consumers won't notice direct effects in 2018 because tax-credits will increase to cover the damages.

Getting Free or Low-Cost Coverage Through Medicaid 

You may qualify for free or low-cost coverage through Medicaid in Alaska, or your children may be able to obtain coverage through the Children’s Health Insurance Program (CHIP).

Medicaid. If you are eligible for Medicaid, you will get free or low-cost health care. You will not need to buy a separate health plan through HealthCare.gov.

When you apply for health coverage at HealthCare.gov, the state will check your application against the Medicaid eligibility rules and tell you whether you qualify for Medicaid or the other savings options described above.

Children’s Health Insurance Program (CHIP). Even if you don’t qualify for Medicaid, your children may be eligible for the Children's Health Insurance Program (CHIP). Kids covered by CHIP don’t need to be included in another health plan.

As of October 2017, Congress has failed to renew funding for CHIP, but benefits will be available until states run out of money to keep their programs going. We hope that Congress will step in and solve the funding crisis before any state programs go bust. Meanwhile, you can check here to find out when Alaska is likely to run out of CHIP money.

When you apply for health coverage at HealthCare.gov, the state will check to see whether your children might qualify for CHIP. If so, it will alert the Alaska CHIP agency.

Learn More

You can learn the final costs for specific plans, including whether you qualify for subsidies or low-cost care programs, when you apply for insurance online at HealthCare.gov or when you talk to a navigator or broker about the plans available to you. 

For more information, see How to Sign Up for Obamacare in Alaska.