| One of the most confusing aspects of healthcare | | | | Assets are not figured into the calculation. That |
| reform is the creation and funding of subsidies. | | | | makes the affordable health insurance subsidy |
| Low and middle income individuals will be given | | | | different from other government programs |
| money to buy a health insurance plan in a highly | | | | intended to help the poor. For example, Medicaid |
| regulated exchange market. These markets will | | | | requires an assets test: if you have too much in |
| be either statewide or regional--the latter | | | | assets, you are not eligible for services. This is an |
| encompassing states with smaller populations. | | | | understandable method of saving money on |
| However, some people are unsure of their | | | | people who are not truly in need, as well as |
| eligibility for subsidization. What money of theirs | | | | preventing fraud in the system. However, it can |
| counts? According to the legislation, eligibility for | | | | have some negative impact. |
| subsidized health coverage will depend on a | | | | Those who have received cash settlements due |
| combination of sources. The sum is known as | | | | to an accident or disability will still be able to take |
| modified gross income. | | | | advantage of a subsidized individual or family |
| Modified gross income includes the following | | | | health insurance plan, although there are some |
| sources of cash: | | | | limitations. Any interest they earn on an |
| - wages from employment | | | | investment of the sum will count towards their |
| - interest income/capital gains on investments | | | | income. Since the subsidy takes effect in 2014, |
| - alimony | | | | people in that situation may choose to adjust their |
| - child support | | | | investments accordingly. |