Have you recently started a new job?
Did you receive a raise or another increase in income?
Are you trying to figure out how to update income in your health insurance market place application?
Getting health insurance through the market place comes with a few stipulations – one of those stipulations is that you need to keep your personal and household information updated.
Updating your income in the health insurance market place doesn’t take much time at all, but you will need to sit down and take care of this task as soon as you can to see if there are any changes to your premiums.
Keep reading to see how to update your income information in the health insurance market place and why you want to do that. You’ll also read about other information you need to update as well.
How to Update Income in the Health Insurance Market Place
Fortunately, updating income in the health insurance market place isn’t difficult to do. For your convenience, you can use one of these methods to update your application:
- Update your application online
- Update your application by phone
- Update your application in person
You are not able to update your application by mail but updating online is typically the fastest and most convenient way to change your income information.
To update your income information online, you’ll follow these simple steps:
- Access your Healthcare.gov account.
- Select an application to update.
- Choose “Report a Life Change” from the menu on the left.
- Review the list of life changes, then click “Report a Life Change.”
- Check the type of life change you need to report (in this case, income).
- Go through the application and make any applicable updates.
- Read through your eligibility results and make any changes as necessary.
If you are starting a new plan, you’ll receive information on how to make your first monthly premium payment. Otherwise, you’ll find out if you need to do anything else.
A Fiorella Insurance Agent can help you choose insurance that’s right for you.
Why You Need to Update Income in the Health Insurance Market Place
While small income changes may be seemingly insignificant, it’s important to understand that updating income information in the health insurance market place is critical to ensuring everyone is paying the right premium amount.
1. It’s important to maintain an accurate application
An accurate application ensures that you’re paying the correct amount for your health insurance premiums. If you’re receiving tax credits and your income goes up, make sure to report that. You may lose premium tax credits, but if you don’t update it, you’ll owe any tax credits you received back to the IRS at the end of the year.
Alternatively, if your income has gone down due to a job or status change, you may qualify for premium payments. That’s why you always want to update your income information with the health insurance market place.
2. Income changes may affect savings on premiums
In an effort to make health insurance more affordable for Americans with low income, the Affordable Care Act offers individuals and families tax credits on their monthly premiums if they make below a certain amount. Individuals that make between $12,760 and $51,040 may qualify for tax credits. A family of three making between $21,720 and $86,880 may qualify for them, as well.
You can apply all or part of your premium tax credits to your monthly payment amount. If you choose to only apply part of the tax credit or not to apply it at all, you’ll receive the remaining credit at the end of the year when you do your taxes.
3. You may qualify for Medicaid or CHIP
Certain states expanded Medicaid coverage as part of the Affordable Care Act. In those states, you may be eligible for Medicaid coverage if you made $17,236 in 2019 or less per year as a single person. A family of three, on the other hand, may qualify if they earned $29,435 in 2019 or less per year. Larger families will have higher income limits to be eligible. Due to Covid-19, we recommend contacting your insurance provider for this year’s Medicaid or CHIP enrollment details because they have changed frequently with each state.
Even if your state did not expand Medicaid coverage, children are always eligible for either Medicaid or CHIP, the Children’s Health Insurance Program, if their household income for a family of three was around $42,000 a year in 2019.
- Due to Covid-19, we recommend contacting your insurance provider for this year’s Medicaid or CHIP enrollment details because they have changed frequently with each state.
Other Information You Need to Update in the Health Insurance Market Place
In addition to updating income information in the health insurance market place, it’s important to make any other changes to your household information as well.
Changes to your application may trigger a special enrollment period, meaning you’ll be eligible to choose another health insurance plan.
Here are some life changes that may trigger additional savings:
- Gaining a dependent: If you have a baby, adopt a child, or foster a child, then your household size increases, which means your family may be eligible for premium tax credits.
- Getting divorced: If you get a divorce and lose your health insurance coverage, you’ll be able to choose a new plan based solely on your income, which may trigger savings.
- Moving to a new state: If you move to a new state, you will be eligible to choose a new health insurance plan, meaning you may have a chance at lower premium costs.
It’s also important to update your contact information. While most health insurance market place information is communicated by email or through the portal, occasionally you may receive mail. You don’t want to miss out on important documents you need to fill out or return.
Update Income in the Health Insurance Market Place with an Insurance Agent or Broker
You don’t have to take the time to go through the online portal to update your income information in the health insurance market place. Using a Fiorella Insurance agent or broker is a convenient way to take care of your health insurance needs without having to figure it out yourself.
You can avoid sitting on the phone for hours by going in person to see an insurance agent or broker. You may need to provide documentation of your income change, so any income information you have will be helpful. Once your information is updated, you’ll find out what discounts you qualify for.
Need help updating your income information in the health insurance market place? Fiorella Insurance Agency can guide you through the process and help you select the best coverage for your needs.