Your chance for subsidized health insurance has been extended until August 15th
Kateryna Onyshchuk | iStock | Getty Images
A special registration deadline for securing private health insurance through the country’s public exchanges has been extended by three months, the Biden government announced on Tuesday.
Originally closed on May 15th, the registration period now ends on August 15th, announced the Centers for Medicare & Medicaid Services. The idea is to give consumers more time to take advantage of the new savings approved in the recently passed American bailout plan.
Changes in this $ 1.9 trillion stimulus package include expanding the premium subsidies (technically tax credits) available through the federal market and state exchanges, as well as expanding the number of people eligible for financial assistance come.
More from Personal Finance:
How social security benefits are handled in the event of death
The IRS has issued more than 42.5 million refunds
A ten year guide to retirement planning
As a rule, the right to tax credits via the federal and state stock exchanges is limited to households whose income is between 100% and 400% of the poverty line. The stimulus package lifts this cap for 2021 and 2022, capping the amount someone pays in rewards to 8.5% of their income as calculated by the stock market.
The tax credit is based on criteria such as income, age, and the “Silver” benchmark plan in your geographic area. The amount for which you qualify is generally credited to you in the course of the year via reduced premiums.
To illustrate, as set out in a report by the Congressional Budget Office, suppose a 64-year-old with an income of $ 58,000 – about 450% of the 2021 poverty line of $ 12,880 – is currently paying $ 12,900 in annual rewards for a plan through the exchange because you are not eligible for subsidies. Under the proposed change, that person would pay no more than $ 4,950 (8.5% of their income) – which means the tax credit would be $ 7,950.
The majority of the 11.5 million people already enrolled in exchange-based health plans will receive tax credits.
The CBO report estimates that the expanded eligibility would result in 1.7 million more people being insured through the market. 40% of them are people who are currently not eligible for tax credits under applicable law because their income is above the 400% ceiling.
On April 1st, the additional savings through the exchanges will be available to people who wish to sign up for coverage, as well as those who already have a plan about the market and may qualify for additional financial aid.
According to government data, more than 200,000 people signed up for market health plans in the first two weeks of the current special registration period, which began on February 15.
If you’re new to the market, Healthcare.gov is the best place to start. In addition, the Kaiser Family Foundation has a marketplace calculator that you can use to estimate whether you would qualify for subsidies under the changed rules.