For Alaska Residents: Getting Financial Help With Your 2014 Healthcare Costs

Starting in January 2014, some people will be able to get financial help with the cost of their health coverage. Here’s a quick overview of how to understand if you qualify and how much you can get. This information is for people living in Alaska. If you’re in Washington, go here.

The main form of help is called the Premium Tax Credit. This credit comes from the federal government and helps to reduce the amount you have to pay each month towards the cost of your health coverage.

Who is Qualified for Help?

Whether you qualify for help depends on your household income and the number of people in your family. The government measures people’s incomes in relation to a measure known as the Federal Poverty Level (FPL). If your household income is below 400% of the Federal Poverty Level, you may qualify for help. The table below shows what that means in Alaska:

 Household Size






















































 For each additional person, add






If your household income is below 78% of FPL, you may qualify for Medicaid and you won’t have to purchase your own healthcare coverage in 2014. If your income is over the 400% amount for your family size then you won’t qualify for federal government help with your healthcare coverage costs.

How Does the Premium Tax Credit Work?

If you qualify for a tax credit, you can choose how you want to receive help. The government can pay the tax credit or a portion of the tax credit directly to Premera each month and we’ll use this to reduce your monthly bill. Alternatively, you can choose to pay your full bill each month, and have the amount of your tax credit taken off your income tax bill when you complete your tax return. Once you’ve met your tax liability for the year, any remaining credit will be paid to you in the form of a refund.

How do You Apply for the Tax Credit?

Premera’s sales team can help you choose a plan. We can also help you understand how to register for a tax credit in Alaska’s health insurance marketplace, starting on October 1. Call 888-334-0109.

How Much Will You Get?

It depends! The tax credit is designed to reduce the percentage of your household income you have to pay towards your coverage. So the amount you get will depend on both your income and the cost of the plan you choose to purchase. The table below shows the maximum amount of your household income you should have to spend on your health plan.

Health care maximum costs table

Example: How the Tax Credit Works

Julia is purchasing coverage for herself, her partner Peter and their two children. She and Peter have a combined household income of $88,320, putting them at 300% of the Federal Poverty Level. Julia selects a Silver Premera Plan. She receives a tax credit so that she pays $699.20 per month for her family’s coverage and the premium tax credit takes care of the rest.

Want to Find Out More?

If you qualify, you can register for a tax credit starting on October 1, which becomes effective on January 1 2014.  Find out more by calling 888-334-0109.

2 Comments on For Alaska Residents: Getting Financial Help With Your 2014 Healthcare Costs

  1. // October 10, 2013 at 7:28 pm //

    It’d be nice if the “example” for “Julia” showed the the math. How did they arrive at $690.20 per month…?

    • Several different factors go into calculating both the subsidy amount and how much Julia would have to pay. To come to this calculation we had to decide where in Alaska Julia and her family lived, their ages and whether they smoked, in addition to their income. We used the Kaiser Family Foundation subsidy calculator to get an estimate of what Julia’s costs might be in 2014. The federal marketplace can tell you exactly what level of subsidy you might be eligible for, although we know that many people are having difficulty accessing that system at the moment.

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