Calculate Bronze Level Affordable Health Care Coverage for 2016

Determine your 2016 bronze level affordable health care coverage with our calculator. Bronze level plans are the most affordable option under the Affordable Care Act, providing essential health benefits at lower cost shares than silver or gold plans.

What is Bronze Level Coverage?

Bronze level health insurance plans are the most affordable option available through the Health Insurance Marketplace. These plans provide essential health benefits but have higher cost-sharing than silver or gold plans. The bronze level is determined by the actuarial value of the plan, which is a measure of the plan's benefits relative to the cost of the plan.

In 2016, the Affordable Care Act established minimum benefit standards for health insurance plans. Bronze plans must provide at least 60% of the benefits offered by the benchmark plan, while silver plans must provide at least 70%, gold at least 80%, and platinum at least 90%.

Note: The 2016 Affordable Care Act rules may not apply to plans purchased outside the Health Insurance Marketplace or to plans that do not meet the minimum benefit standards.

How to Calculate Bronze Level Coverage

To calculate your bronze level affordable health care coverage for 2016, you'll need to know your household income and the number of people in your household. The Affordable Care Act uses a sliding scale to determine the amount of premium tax credits you may qualify for based on your income and household size.

The formula for calculating bronze level coverage involves several steps, including determining your income-to-poverty ratio, applying the appropriate subsidy percentage, and calculating the total premium tax credit. Our calculator simplifies this process by automating these calculations.

Formula

The formula for calculating bronze level affordable health care coverage for 2016 is as follows:

Step 1: Determine your income-to-poverty ratio

Income-to-poverty ratio = (Household income / Federal poverty level) × 100

Step 2: Apply the appropriate subsidy percentage

Subsidy percentage = Lookup table based on income-to-poverty ratio and household size

Step 3: Calculate the total premium tax credit

Premium tax credit = (Subsidy percentage × Bronze plan premium) / 12

The lookup table for subsidy percentages is based on the 2016 Affordable Care Act rules and varies by income-to-poverty ratio and household size.

Example Calculation

Let's say you have a household income of $45,000 and 3 people in your household. The federal poverty level for a family of 3 in 2016 was $23,850.

Step 1: Calculate the income-to-poverty ratio

Income-to-poverty ratio = ($45,000 / $23,850) × 100 = 188.6%

Step 2: Determine the subsidy percentage

For a family of 3 with an income-to-poverty ratio of 188.6%, the subsidy percentage is 8.5%.

Step 3: Calculate the premium tax credit

Assuming a bronze plan premium of $300 per month, the premium tax credit would be:

Premium tax credit = (8.5% × $300) / 12 = $20.63

This means you would pay $279.37 per month for your bronze plan instead of $300.

How to Use the Results

Once you've calculated your bronze level affordable health care coverage, you can use the results to compare different health insurance plans and determine which one best fits your needs and budget. Keep in mind that the premium tax credit is applied to the total premium amount, not the out-of-pocket costs.

If you qualify for a premium tax credit, you may also be eligible for cost-sharing reductions, which can lower your out-of-pocket costs for doctor visits, prescriptions, and other health care services. Be sure to review the details of your health insurance plan to understand how these cost-sharing reductions apply.

Frequently Asked Questions

What is the difference between bronze, silver, gold, and platinum plans?: Bronze plans are the most affordable option and provide essential health benefits at lower cost shares than silver, gold, or platinum plans. Silver plans offer more comprehensive coverage, while gold and platinum plans provide the most extensive coverage at higher premiums.
How do I know if I qualify for a premium tax credit?: You may qualify for a premium tax credit if you purchase a health insurance plan through the Health Insurance Marketplace and your household income is between 100% and 400% of the federal poverty level. The amount of the premium tax credit you qualify for depends on your income, household size, and the cost of the bronze plan in your area.
Can I apply for a premium tax credit if I already have health insurance?: No, you cannot apply for a premium tax credit if you already have health insurance that provides minimum essential coverage. However, you may be eligible for cost-sharing reductions if you qualify for a premium tax credit.
What happens if I don't enroll in a health insurance plan during the open enrollment period?: If you don't enroll in a health insurance plan during the open enrollment period, you may be subject to a penalty when you file your taxes. The penalty amount is based on the lowest cost silver plan in your area and increases each year.
How do I compare different health insurance plans?: To compare different health insurance plans, consider factors such as premium cost, deductible, copayments, coinsurance, and out-of-pocket maximum. You can use our calculator to estimate your premium tax credit and compare the total cost of different plans.