What Do I Do if I Have No Income for an ACA Marketplace Plan?
Just the Essentials...
- Federal healthcare plans available through the ACA Marketplace include Medicaid and Children’s Health Insurance Program (CHIP) plans.
- You’ll need to report some form of household income when you apply for an ACA Marketplace health insurance plan.
- You may purchase Family Plans to provide coverage for dependents with no income.
- Medicare and CHIP plans do not require you to have a minimum income.
- Certain levels of income may qualify you for premium tax credits.
- Supplemental Security Income (SSI) does not count as household income toward your ACA Marketplace plan.
Household Income Matters When Applying for an ACA Marketplace Plan
Your household income plays a major role in obtaining health insurance coverage through the ACA Marketplace. It’s used in determining which types of health insurance plans to serve up for customers, and it also helps the Marketplace find cost-saving reductions that can help you save on monthly premiums.
Don’t let a low income keep you from getting the quality health insurance that you need. Comparison shop for plans today by using our free plan finder. Just enter your zip code above and begin comparing health insurance plans in your area today.
Income Does Not Directly Affect Your ACA Marketplace Plan Premium Costs
While your income may be used to help you find Marketplace plans that can better fit your budget, your income does not affect your premium costs. With the passage of the Affordable Care Act (ACA), private insurance companies can no longer deny you coverage or raise your premiums because you have pre-existing conditions, are considered “low income,” or are seen as a credit risk.
The factors that can affect your premiums are not monetary at all, and they include:
- Your age
- Tobacco usage
- Where you live
- Whether or not you’re purchasing an individual or family plan
The tier of “metal” plan you choose through the Marketplace: Platinum, Gold, Silver, Bronze, or Catastrophic
Some Forms of Income May Not Count on Your Application
Most of what you bring in as income will count when listing income sources on your application for health insurance through the Marketplace. Very few items will not count as income, but it’s important to know what those items are when you’re preparing to enroll in a Marketplace health insurance plan.
Some of the sources that will not count as income on a Marketplace health insurance application include:
- Child support
- Monetary gifts
- Supplemental Security Income (SSI)
- Veterans’ disability payments
- Workers’ compensation
- Proceeds received from loans (examples include student loans, home equity loans, or bank loans)
- Child Tax Credit checks or deposits
Enrolling in a Family Plan
Members of your household who do not have an income of their own will not be able to enroll in an ACA Marketplace health insurance plan. If you want those individuals to be covered, your best option is to enroll in a Family Plan, which covers you and your dependents who are currently not receiving any form of income. A positive of this plan type is that you can make sure your children have adequate health coverage up until the age of 26.
Open Enrollment and Switching Plans
The Open Enrollment Period (OEP) for Marketplace health insurance plans starts on November 1 of each year and runs through January 31. This is a time during which you can:
- Enroll in a new health insurance plan
- Renew your current plan
- Switch to a different health insurance plan
OEP is the only time period during which you can enroll in a health insurance plan or make changes. The only exception is if you go through a life event that may lead you to qualify for a Special Enrollment Period (SEP) during which you can enroll or make changes.
For many, OEP is a time to switch to a health insurance plan that best meets their current needs. For example, let’s say you’re currently on an individual plan. Your spouse loses their job, which leads them to lose their health insurance as well. This may prompt you to want to switch to a Family Plan so that your spouse can be covered as well. During OEP, you can make this change.
Medicaid Referrals
If you do not meet the minimum income level for general ACA Marketplace plans, you’ll receive an automatic referral for Medicaid coverage. Whether you use the federal exchange, or you use a state exchange, a referral for extra assistance is part of the process. In states that have adopted Medicaid expansion, the threshold for receiving Medicaid falls immediately below that of health insurance plans so that everyone can receive essential healthcare benefits and coverage.
If you are referred for Medicaid coverage, it’s important to know that:
- Medicaid has no minimum income requirement
- Children’s Health Insurance Program (CHIP) plans have no minimum income requirement
- There are no OEP restrictions on Medicaid or CHIP plans
Health Insurance is Available to All
If you do not live in what is considered a “traditional” household, and you fear that you may not be able to purchase a Family Health Insurance Plan that would give your partner health insurance benefits, fear no more. Family Plans cover all partners regardless of gender or sexual orientation. The ACA seeks to cover as many beneficiaries as possible while improving the level and quality of healthcare in the United States.
Income is Necessary to Enroll in an ACA Marketplace Plan
The bottom line is that all health insurance plans available through the ACA Marketplace require proof of valid income before you can apply. If there are individuals in your household that do not draw an income, you can make sure they’re covered with a Family Plan. Even if your income is too low to qualify for coverage through an ACA Marketplace plan, you can still receive a referral for Medicaid or CHIP benefits.
Find a health insurance plan that fits both your needs and your budget. Use our free comparison tool to compare health insurance plans in your area by entering your zip code below.
Key Resources:
1: “Extra Savings on Out-of-Pocket Healthcare Costs”
3: “The Health Plan Categories: Bronze, Silver, Gold, and Platinum”
4: , “What’s Included as Income”
5: “Enroll in or Change 2022 Plans – Only With a Special Enrollment Period”
