Effective for 2014, all non-exempt U.S. citizens and legal residents are required to have health insurance (minimum essential coverage), or face paying a penalty tax when filing their 2014 tax return. To help individuals and families obtain health insurance, the Health Care Reform Act provides for a premium assistance credit designed to help individuals and families afford the cost of health care. br br In general, if household income is at 100 of the federal poverty level, the credit is designed to reimburse the insurance company so that the amount billed to the participant does not exceed 2 of household income. If household income is at 400 of the federal poverty level (over $94,000 for a family of four in 2014), the credit is designed to reimburse the insurance company so that the amount billed to the participant does not exceed 9.5 of household income. If household income is between 100 and 400 of the federal poverty level, the credit will be adjusted to an amount that allows the participant to pay between 2 and 9.5 of household income for the cost of health insurance. Individuals below 100 of the federal poverty level qualify for Medicaid and thus do not need the credit to help pay for insurance.