Covered California and the Affordable Care Act are health reform initiatives meant to help Americans get access to quality and affordable medical benefits. One of the primary benefits of these initiatives is the ability to receive subsidies to help reduce the costs of monthly healthcare premiums.
However, according California Healthline and a recent study by H&R Block, nearly two-thirds of taxpayers who received a subsidy on the Covered California exchange are now having to repay taxes to the federal government.
Individuals who were granted too big of a subsidy had to repay about $729 on average compared to those who were given too little of a subsidy and were given back $429 on average.
You can qualify for a Covered California Subsidy if:
- You are a US citizen, US National, or lawfully present immigrant who has purchased coverage through Covered California
- You are not eligible for other public health coverage such as Medi-Cal or Medicare
- You have an annual household income of 138% and 400% of teh Federal Poverty Level (FPL)
About 55% of people who received a subsidy on the exchange had to pay back the federal government. There were about 45% of people who were refunded since they should have been given a higher subsidy.
Get more information on subsidies and eligibility here.