The average health insurance tax credit people are getting through MNsure is a lot higher this year.
The average monthly subsidy has jumped to $637 for 2017, MNsure said Tuesday. That's nearly three times more than the $210 monthly tax credit people who bought individual plans through the health insurance exchange got last year.
More than half (57 percent) of people who have enrolled in coverage through MNsure for next year are eligible for some type of tax credit, MNsure notes. Tax credits are immediate discounts on the health insurance premiums people pay monthly, and the average subsidy for next year is increasing because premiums are getting a lot more expensive.
"Premiums are higher, but so are tax credits available through MNsure, so Minnesotans need to shop to see if they can find affordable health coverage," Allison O’Toole, the CEO of MNsure, said in the news release.
"For many of our customers, we’re seeing that the amount of their tax credit is significantly or completely offsetting the amount of their premium increase."
Tax credits are based on income levels. Individuals who earn up to $47,520 or families of four who earn up to $97,200 per year are eligible for subsidies when buying insurance on the individual market (about 250,000 Minnesotans buy this kind of coverage through MNsure or directly from insurers).
MNsure says 29,783 Minnesotans have bought insurance through MNsure since open enrollment began Nov. 1. For those looking for coverage starting Jan. 1, 2017, the deadline to enroll is Dec. 15. (Enroll online here.)
For more information on how to save money through MNsure, click here.