The Health Insurance Marketplaces are open for enrollment and you may be wondering what your health insurance premium and tax credit will be. Or if you're a small business owner adopting employer-funded individual health insurance, you may be wondering how much employees will pay for health insurance.
One way to do this quickly is with the updated Kaiser Family Foundation (KFF) calculator. Here is a look at the updated 2015 calculator, and a breakdown on how to use it.
Health Insurance Premium and Tax Credit Calculator
KFF’s Health Insurance Marketplace Calculator gives you an estimate on what you will be paying for health insurance and the likelihood of your eligibility for receiving a premium tax credit for 2015. You can calculate an estimate of your health insurance premium and tax credits all in one place.
How to Use the Health Insurance Premium and Tax Credit Calculator
First, go to the kff.org site to find the calculator. Once you’re there, enter basic personal information and click submit when you’re finished. The information you'll enter includes:
- Zip code
- Household income
- Whether job-based coverage is available (y/n)
- Total number of people in your family
- Number and ages of adults in your family
- Number and ages of children in your family
- Tobacco use (y/n)
Tip: Be sure to enter all of the information as accurately as possible for the best results, including your household income (which is calculated using MAGI).
Example - Family in Arkansas Earning $48,000/year
Here's a look at a health insurance premium and tax credit estimate for a three-person family living in Arkansas, earning $48,000/year.
Example - Young Adult In Utah Earning $20,000/year
Here's a look at a health insurance premium and tax credit estimate for a 21-year old living in Utah, earning $20,000/year.
A Quick Look At The Results
In first example above, the family of three in Arkansas would pay about $314/month ($3,762/year) for a Silver plan, receiving a premium tax credit of $351/month ($4,217/year). Without financial help, the Silver plan would cost significantly more at $665/month ($7,979/year), or 52% more.
In the second example above, a single young adult in Utah would pay about $84/month ($1,002/year) for a Silver plan, receiving a premium tax credit of $83/month ($1,002/year). Without financial help, the Silver plan would be $167/month ($2,004/year), or 50% more.
Tip: The calculator uses average premium cost estimates for the zip code and personal information entered. Actual costs will vary on the exact plan and coverage selected.
Other Levels of Coverage
Remember that there are other levels of coverage. The different levels include bronze, silver, gold, and platinum - as well as catastrophic plans. In addition to providing an estimate for a Silver plan, the calculator also provides an estimate for a Bronze plans.
Following the same examples, the Arkansas family could purchase a lower-coverage Bronze plan and pay about $154/month ($1,854/year) .
The single young adult in Utah could purchase a Bronze plan for about $50/month ($597/year).
As you begin to consider what coverage you may need as an individual or as a family, or if you're a small business looking to calculate the cost of employer-funded individual health insurance, the updated KFF calculator is a quick and easy tool.
What questions do you have about how to calculate your health insurance premium and tax credit in 2015? Leave a comment below, and we'll help answer it.