Question: It appears from the rates out today that the subsidy level is fixed not the premium as an earlier question indicated. I thought the premium was a % of income, can you clarify?
Answer: The net premium for those eligible for a premium subsidy is a percentage of income. You may have been confused by a table such as the one below, that was released with the announcement of the new rates. This is an example of the rates a 40 year old single individual might pay (net after subsidy) in Region 16 (Los Angeles - South) for a Silver Plan.
That amount shown in each box at the top and in black is the net premium due after subsidy. The premium subsidies are shown in green. While this is a fixed number, it is derived as a percentage of the total premium and that percentage varies with income.
The net cost of a silver level plan after subsidies can be computed using a percentage of income on a sliding scale as follows:
- Up to 133% FPL - 2% of income
- 133 - 150% FPL - 3% - 4% of income
- 150 - 200% FPL - 4% - 6.3% of income
- 200 - 250% FPL - 6.3% - 8.05% of income
- 250 - 300% FPL - 8.05% - 9.5% of income
- 350 - 400% FPL - 9.5% of income