The Affordable Care Act (ACA) was designed to make health insurance accessible—and subsidies are a key part of how it achieves that goal. These financial assistance programs help reduce monthly premiums and, in some cases, out-of-pocket costs for eligible individuals and families.

There are two main types of subsidies: premium tax credits, which lower your monthly premium, and cost-sharing reductions, which lower what you pay when you get care (deductibles, copays, etc.). Eligibility is based on your household income, family size, and where you live. Many people are surprised to learn they qualify for significant savings—even if they previously assumed they made too much.

This article walks you through how subsidies work, how to estimate your eligibility, and how to apply them to your plan through the health insurance marketplace. You’ll also learn what happens if your income changes mid-year and how to avoid repayment surprises when filing taxes.

If navigating subsidies sounds complicated, don’t worry. Infinite Health’s advisors can help you calculate your potential savings and select a plan that makes the most of your financial assistance.