Access Health How Is Income Calculated

How Access Health Calculates Income

Access Health evaluates income based on federal poverty guidelines adjusted for household size and location. The calculation considers:

• The total annual income of all household members
• The number of people in the household
• The state where the household resides
• Any applicable deductions or exemptions

The system compares the household's total income to the federal poverty level for their household size and location. If the income falls below a certain percentage of the poverty level, the household may qualify for coverage.

Income Eligibility Formula

The basic formula used by Access Health is:

Households with an income eligibility percentage below 138% of the federal poverty level typically qualify for coverage. This percentage may vary slightly by state.

For example, a single person in a state with a federal poverty level of $12,880 would have:

This would place them at 100% of the federal poverty level, which is typically below the 138% threshold for eligibility.

Factors Affecting Income Calculation

Household Size

The federal poverty level increases with household size. For example:

State Variations

Some states have higher or lower poverty levels than the federal average. For example, Alaska has a higher poverty level than the national average due to higher living costs.

Income Sources

All income sources must be reported, including wages, self-employment income, unemployment benefits, Social Security, pensions, child support, and other forms of income.

Deductions and Exemptions

Certain expenses may be deducted from income, including:

• Work-related expenses
• Health insurance premiums
• Retirement contributions
• Student loan interest

Some states also allow additional exemptions for specific expenses.

Common Income Scenarios

Single Person Scenario

A single person earning $15,000 in a state with a federal poverty level of $12,880 would have:

This would place them at 116% of the federal poverty level, which is typically below the 138% threshold for eligibility.

Family of Four Scenario

A family of four earning $30,000 in a state with a federal poverty level of $26,500 would have:

This would place them at 113.2% of the federal poverty level, which is typically below the 138% threshold for eligibility.

High-Income Scenario

A family earning $50,000 in a state with a federal poverty level of $26,500 would have:

This would place them at 188.7% of the federal poverty level, which is typically above the 138% threshold for eligibility.