2014 Federal Poverty Guidelines Released

Under ACA, eligibility for Medicaid and premium-reduction subsidies for exchange policies is governed by the poverty guidelines for the policy year.   The 2014 guidelines are now available and can be viewed at: http://familiesusa.org/product/federal-poverty-guidelines

In the Medicaid expansion states, individuals and families who fall under 133% of the  poverty line will receive coverage through Medicaid.   Those whose incomes are between 133% and 400% are eligible for subsidies and/or a tax credit when purchasing insurance through an exchange.

In states that have not expanded Medicaid,  individuals and families are eligible to purchase subsidized insurance from an exchange so long as their anticipated income is at or above the 100% poverty level.

If a taxpayer is approved to receive a subsidy by an exchange, but their total income for the year as reported on their 2014 return falls below the 100% level, their tax credit will be computed as the value that would apply if their income was exactly 100% of the FPL.  Continue reading

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