Under the Affordable Care Act, people who have income between 100-133% of the federal poverty level will either be exempt from the mandate, or will be automatically enrolled in their state’s Medicaid program (free coverage paid for by the government). States are allowed to opt out of the Medicaid expansion, and some have already elected to do so (see the map below to find out where your state stands). This means that people with incomes at 133% of the federal poverty level or lower will be exempt from the ObamaCare mandate if their state has opted out (the first and second columns in the chart below). They are still free to purchase private health insurance through the exchanges, but they are not legally required to do so. Individuals and families with incomes between 133-400% of the federal poverty level will be eligible for premium and cost-sharing credits that will help pay for their health plans in order to avoid imposing an unfair financial burden on the person or family. These credits will be applied to your federal income tax return each year.
Note: Since this map was created, Arizona has passed Medicaid expansion and is officially participating.
Learn more here: ObamaCare in Plain English: What it Means for You