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Is my social security considered income under obamacare?

Here's what you need to know...
  • Most social security payments count as income for Obamacare adjusted income computation
  • Social Security payments count as qualifying income for participation in Health Insurance Programs
  • Social security disability income (SSDI) counts as income for Obamacare adjusted individual or family income
  • Social Security Supplemental Security Income (SSI) does not count as income for Obamacare adjusted gross income.
  • Obamacare counts income from all family members with a few exceptions for those not required to file tax returns.

Social Security is an important part of the social safety net in the USA. It helps workers save for a comfortable retirement. When considering Obamacare health insurance, income information is a critical part of the determination for participation in Obamacare benefits. Comparison shopping will help consumers find the best Obamacare plan to meet their needs. It can also find the best plans outside of Obamacare that meet the requirements of the Individual Mandate for qualified health insurance coverage. Start comparing health insurance plans now by entering your zip code in our FREE tool above!

Health care reform Helps Everyone

Obamacare uses an income standard to determine eligibility for benefits and financial assistance. Those earning more than 400 percent of the federal poverty guideline will likely not receive financial benefits from Obamacare. The health insurance reforms in the Affordable Care Act help every American family. They protect against insurance industry practices that made health care more difficult to get and expensive to maintain. These include denials of coverage for pre-existing conditions, denials for seriously ill children, and charging women more because they had or might have children.

Why Social Security and SSDI Count

Social security is a form of worker insurance that pays taxable and nontaxable benefits after retirement age. A widely asked question concerns eligibility for Obamacare and staying within the 400 percent limit to receive benefits like tax subsidies, payment assistance, and Health Savings Account eligibility. Income and family income must qualify, and the Obamacare rules determine which income to count and exceptions. The basic rule is that income from any source counts as income for Obamacare eligibility purposes. Social Security income counts as income when received by any member of the applicant’s household.

Details on Social Security Income

Social Security was meant to be income and not an entitlement based on status such as age or disability. The worker’s insurance program comes from taxes on employers and employees, self-employed persons, and businesses. The program provides benefits based on contributions and work history.

Obamacare and Disability

Obamacare eliminates disability as a basis for denial of health insurance. Disabled people can buy health insurance on the Obama marketplace and also get qualified health plans from private insurers.

Before the Affordable Care Act, many people applied for Social Security Disability Income to get Medicare coverage because private insurers denied coverage to those with prior illness.

After the Affordable Care Act, disabled persons can qualify to participate in the Obamacare Marketplace or simply buy health coverage anywhere that meets the standards of the health reform law.

The Supplemental Security Income (SSI)

The supplemental security income program pays benefits to older persons with significant disabilities and those age 65 or older with limited incomes. The funding for SSI comes from the general treasury funds and not from FICA or other social insurance programs tied to work and tenure in the job market. To get SSI, one must be a US citizen, national, or legal resident, reside continuously in the US, and meet one of the below-described categories.

  • Blind
  • Disabled
  • 65 years old or older with limited income
  • 65 years old or older with limited resources

SSI and Children

The Social Security Administration provides relief for blind and disabled children. These benefits would also not count in Obamacare adjusted gross income because these recipients are not required to file income tax returns. Individuals or families do not report Supplemental Security income as taxable income to the IRS.

The Supplemental Security Income (SSI)Does not Count

The IRS rules make it clear that subsistence payment for Supplemental Security for disabled and elderly with limited resources are not taxable income. Obamacare rules follow the tax code on the question of taxable income and do not count SSI payments in adjusted gross income. The purpose of Supplemental Security is to relieve extreme situations in a compassionate way for persons whose lives have been reduced to need by disability and poverty.

Social Security Works with Obamacare

Due to the ACA reforms, no one can be denied coverage because of pre-existing conditions, age, gender or other criteria. Counting social security payments as income may limit participation for some higher income earners, but it enables participation for millions with low to moderate income levels. Comparison shopping is the best way to find a plan that meets the needs of an individual or family, and particularly if a disability, age, or health conditions are significant factors. Start comparing health insurance providers now by using our FREE tool below!

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