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Is The $6,400 Health Subsidy Real

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Just, social media has been buzzing with posts and videos spreading the word that the U.S. Government is granting a $6,400 support to people under 65 who meet specific income conditions. The idea of receiving money from the government for your costs may sound attractive, but these claims are simply a scheme expected at tricking people.

Despite the talk, there is no truth to the statement that the ACA subsidy provides eligible individuals and families with $6,400 in the form of cash or a check. While it’s worth noting that anyone promising direct cash assistance is being truthful, the fact is that the Affordable Care Act (ACA), also talk about to as Obamacare, does indeed offer significant aid to make health insurance more easy to get to.

The confusion arises from how ACA subsidies function – they don’t come in the form of a one-time payment but instead will aid in lowering your monthly health insurance premiums. Though the total value of these subsidies can reach as high as $6,400, for certain individuals the subsidy amount is directly deducted from your insurance expenses rather than given to you in the form of a separate check or cash sum.

Understanding the Real Obamacare Health Subsidy

So if you’re not receiving a $6,400 check what does the ACAs subsidy program offer you? The primary forms of support available include:

  • Premium Tax Credits: These subsidies decrease your health insurance premium costs. The credit amount is calculated based on factors like your household, income level, and the price of the grey plan in your region.
  • Cost Sharing Reductions (CSRs): These subsidies help lower your out-of-pocket expenses. Such as deductibles, copayments, and coinsurance. To be eligible for CSRs, you need to enroll in a silver-level plan complete the Marketplace.

The crucial point to grasp is that these subsidies are not distributed as one-time lump sum payments or checks. Instead, they are directly applied to your health insurance expenses each month effectively reducing your owed amount.

For instance, if the standard silver plan in your region costs $500 monthly and your income-based contribution is 4% of that amount (up to $20), the premium tax credit would cover the remaining $480. It suggests you only need to pay the $20 each month, not the $500.

How does the government’s subsidized healthcare program really work?

While the promises of lump sum pay-outs and payments are not real, the Reasonable Care Act (ACA) does offer aid to help millions of Americans afford health insurance. Here is how the ACA subsidy program actually works.

Eligibility for the ACA Subsidies

To qualify for health insurance grants under the ACA your home income must fall between 100% and 400% of the shortage level (FPL). For 2024 this converts to an income range of $14,580 to $58,320 for an discrete or $30,000 to $120,000 for a family of four.

Apart from meeting income criteria, you must also be a U.S. Citizen or lawful resident settler. You should not have access to employer-sponsored health coverage that meets requirements and should not be qualified for Medicaid, Medicare, or other public health programs. It’s worth talk about that the criteria for eligibility can differ to some extent from one state to another as some states have opted to expand Medicaid under the ACA while others have not. Moreover, certain immigrants with an eligible status may qualify for subsidies even if their income falls below the poverty threshold.


While abilities of receiving a $6,400 payout in cash or a check is often expected at deceiving individuals, the Affordable Care Act does offer important support to help make health insurance more reasonable for many qualifying Americans.

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