What is an insurance premium tax credit?

An insurance premium tax credit is a financial aid program provided by the state of Washington to help people with low or moderate incomes afford health insurance premiums. The credit is refundable and can be used to reduce the cost of health insurance premiums, which may otherwise be too expensive for individuals or families to afford. This credit helps people who purchase insurance on their own, or through an employer or government program, pay for the monthly premium costs associated with those plans. In Washington, the credit is refundable and can be used to receive a tax refund or keep more of your wages. The credit is managed by the Washington Department of Health and Human Services and is based on an individual or family’s income. The amount of the credit is determined by the number of family members and their level of income. The size of the credit is not fixed, but rather is variable and is adjusted based on the family’s income and can range from a minimum of $50 per person to a maximum of $756 per person per month. Eligibility for the credit is determined on a case-by-case basis and those interested in applying should contact the Department of Health and Human Services for more information.

Related FAQs

How can I get health insurance?
What happens if I don't have health insurance?
What is a Dependent Care Assistance Program (DCAP)?
What is a cost sharing reduction (CSR)?
What is a co-payment?
What is an insurance premium tax credit?
What is a gap period?
What is a reimbursement summary?
What are the different types of health insurance plans?
What is a pre-authorization?

What is an insurance premium tax credit?

Related FAQs

Related Blog Posts