Suppose annual premiums for the silver and gold plans in the health insurance exchange in your geographical area will be established at $5,000 and $7,000 respectively in 2014, your individual income will be $40,000 in 2014 and you will be eligible to buy health insurance through that exchange. If you decide to buy the gold plan, your contribution to the premium cost will be

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Affordability threshold for health insurance premiums in PPACA is established at 9.5%. For you, this amounts to $40,000 x .095 = $3,800. The government will issue a premium credit for the difference between this amount and the price of the silver plan: $1,200. If you apply this credit towards the cost of the gold plan, your remaining balance will be $7,000 - $1,200 = $5,800.

Suppose Annual Premiums for the Silver and Gold Plans in the Health