Does Workers’ Compensation Count as Income For Obama Care Subsidies

Without health insurance, when a claim is denied, employees find themselves in a catch-22

Obama Care is here. Like it or hate it, it is the law of the land. If your employer provides insurance, it is most likely looking at its options. If you need to get your own insurance, it is time to look at your own options. One question I see people asking as they search for help, is whether workers’ compensation benefits count as income under Obama Care.

Why does it matter whether workers’ compensation counts as income for the Affordable Care Act? It matters because your income determines your right to subsidies under the Act.

Workers’ Compensation is Income

Under the instructions for how to calculate your income, the Healthcare.gov site specifically states that you should not include your workers’ compensation benefits.

What are Subsidies?

Subsidies under Obama Care serve to decrease the cost of health insurance for those who make under a certain amount of money per year. This CNN article, What You’ll Actually Pay Under Obama Care, does a nice job of explaining the financial support you can expect for your insurance based on your income.

Do Not Calculate Workers’ Compensation Benefits in Your Income

When you review the article I linked to, be certain you do not include your workers’ compensation benefits as part of your income. According to the article, if your annual income is $17,235, you will not pay more than $57 per month for your health insurance ($684 per year.)

It is estimated that 47% of Americans are eligible for subsidies which would cover about 66% of the insurance cost or an average of $5,548 per year.

The subsidy varies based on your location. So for example, the subsidy might be higher in New Jersey (which is known for higher insurance rates) than Pennsylvania.

You can check how much of a subsidy you might qualify for by using this calculator on Kaiser’s website.

Need Help With Workers’ Compensation?

If you need help with obtaining workers’ compensation benefits, please contact our Pennsylvania workers’ compensation attorneys.