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New analysis shows 68,000 New York residents currently buying individual health coverage off-Marketplace may be eligible for Affordable Care Act premium tax credits HHS encourages New York consumers to evaluate Marketplace options during upcoming Open Enrollment

Since the Affordable Care Act became law, millions of Americans gained coverage or found more affordable options thanks to premium tax credits available through the Health Insurance Marketplace. Today, the U.S. Department of Health and Human Services (HHS) released data showing that 68,000 New York residents who currently purchase off-Marketplace individual market coverage may qualify for tax credits if they shop for 2017 coverage through the Marketplace.  Nationally, the report finds that 2.5 million Americans who currently purchase off-Marketplace individual market coverage may qualify for tax credits.

"More than 9 million Americans already receive financial assistance through the Health Insurance Marketplace to help keep coverage affordable, but today's data show millions more Americans could benefit," said Secretary Sylvia M. Burwell. "We encourage everyone to check out their options on HealthCare.gov or their state Marketplace and see if they qualify for financial assistance. Marketplace consumers who qualify for financial assistance usually have the option to buy coverage with a premium of less than $75 per month."

Today's analysis estimates that about 6.9 million individuals currently purchase health insurance in the off-Marketplace individual market. Of those, about 1.9 million either have incomes that would qualify them for Medicaid or place them in the Medicaid coverage gap or are ineligible to purchase Marketplace coverage due to immigration status, while the remainder could enroll in Marketplace qualified health plans (QHPs).

Counting both Marketplace and off-Marketplace consumers, more than 70 percent of all QHP-eligible individuals currently insured through the individual market have incomes that could qualify them for tax credits. If the Marketplace-eligible uninsured are included as well, today's analysis indicates that almost 80 percent of all Americans eligible for Marketplace coverage could qualify for tax credits based on their income.

Many consumers remain unaware of the financial assistance available to them through the Marketplace. For example, a recent Commonwealth Fund survey found that only 52 percent of uninsured adults were aware that financial assistance is available through the Marketplaces.

Tax credits available through the Marketplace are designed to both improve affordability and protect consumers from the impact of rate increases.  Consumers may be eligible if their incomes are between 100 and 400 percent of the federal poverty level (about $100,000 for a family of four). If all premiums in an area go up, the large majority of Marketplace consumers will not have to pay more because tax credits will increase in parallel. A recent HHS analysis  found that, in a hypothetical scenario where all 2017 rates increased by 25 percent, 73 percent of current Marketplace consumers would be able to purchase coverage for less than $75 per month thanks to tax credits.

During the upcoming Open Enrollment, HHS will be placing new emphasis on making sure people currently buying individual market coverage off-Marketplace know their options.

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