Does The Affordable Care Act Cover Drug and Alcohol Rehab Costs?

Subsidies, often called tax credits, are available under Obamacare and are based on a person’s income. Premium payments are capped at a specific proportion of your annual wage.

While the Affordable Care Act allows anybody to obtain health insurance, people with earnings of between 100% and 400% of the FPL (federal poverty level) may be eligible for financial help that lowers premiums and other out-of-pocket payments when seeking care.

With an income between $26,500 and $106,000 (based on 2021 FPLs), a family of four qualifies to receive financial assistance to pay for alcohol and drug addiction treatment. In addition, if a (single) person’s annual income is between $12,880 and $51,520, they may be eligible for these tax credits.

Here is what you need to know if you’re wondering whether you qualify for a subsidy under Obamacare:

• The earnings you declare in the year your health plan covers you will determine your eligibility for credits, not your income from the previous tax year. This implies that you must provide an estimated amount of your earnings when applying for ACA subsidies.

• You may be obliged to pay back part or all of the subsidy money spent on your behalf for your insurance premiums if you earn more than anticipated during the year.

• If you make less money than anticipated during the year, you may qualify for further subsidy support, which may be allocated when you submit your year-end taxes. If this is the case, you must keep careful records to ensure you get this funding.

• A website, healthcare.gov, “the Health Insurance Marketplace,” is set up to sell insurance policies that the ACA backs.

• ACA subsidies are available via your state’s government-run health insurance Marketplace, qualified licensed agents, and private online Marketplaces that work with the government Marketplace.