No Obamacare Subsidy for Some Low-Income Americans (+video)

Photo Credit: Reuters/Jonathan BachmanOne of the basic tenets of Obamacare is that the government will help lower-income Americans — anyone making less than about $45,900 a year — pay for the health insurance everyone is now mandated to have.

But a CNN analysis shows that in the largest city in nearly every state, many low-income younger Americans won’t get any subsidy at all. Administration officials said the reason so many Americans won’t receive a subsidy is that the cost of insurance is lower than the government initially expected. Subsidies are calculated using a complicated formula based on the cost of insurance premiums, which can vary drastically from state to state, and even county to county.

That doesn’t change the fact that in Chicago, a 27-year old will receive no subsidy to help offset premiums of more than $165 a month if he makes more than $27,400 a year.

In Portland, Oregon, subsidies for individuals making just $28,725 a year phase out for those younger than 35 years old.

The subsidies situation is adding another layer of complications and calculations to the already-complex picture of Obamacare.

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