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The latest coronavirus relief package did more than hand out checks for $ 1,400. The law has also made health insurance free for millions more and reduced costs for others, at least for now.
The US bailout, which President Joe Biden signed in March, extended subsidies to people who buy their own insurance on the Affordable Care Act trades. In addition, anyone who receives unemployment benefits this year can claim zero premium health insurance through swaps, regardless of income.
In fact, many currently uninsured people will receive free or low-cost coverage through exchanges or Medicaid, says Daniel McDermott, policy analyst at KFF, the non-partisan health care think tank formerly known as of Kaiser Family Foundation.
People who have lost their jobs but want to keep their former employer’s health insurance can also get help. If you don’t qualify for group health insurance elsewhere, the federal government will pay your COBRA premiums for up to six months.
Millions of people qualify for free ACA coverage
Since 2013, ACA swaps have allowed people to purchase individual and family health insurance policies, typically with tax credits that lower their premiums and other costs. ACA has four levels: bronze, silver, gold and platinum. Bronze plans generally have the lowest monthly premiums and the highest deductibles; platinum plans have the highest premiums and the lowest deductibles.
Before the new relief plan, people with incomes above 400 percent of the federal poverty level were generally not eligible for grants to reduce their premiums. Now, people with incomes reaching 600 percent of the poverty line – up to $ 76,560 for a single person or $ 157,200 for a family of four – may be eligible, according to KFF. (KFF’s calculator can show you how much you would likely pay for ACA coverage.)
The relief program has reduced premiums for the vast majority of people who buy their own insurance, McDermott says. In addition, nearly half of the 29 million currently uninsured people are now eligible for a free plan, he says.
Those with incomes below 250% of the poverty line will also benefit from reduced cost sharing, which means lower deductibles and other out-of-pocket expenses. At 150% of the poverty line – an income of about $ 19,000 for a single person and just under $ 40,000 for a family of four – people are eligible for zero-premium money plans with annual deductibles of only $ 177.
Millions of unemployed people will be entitled to similar coverage. Anyone receiving unemployment benefits for any part of 2021 can benefit from a zero-premium money plan with the maximum cost-sharing cuts, McDermott said. “For all intents and purposes, the health insurance exchanges will treat you as if your income is below 150 percent” of the poverty line, he says.
This new provision for the unemployed may not be reflected on HealthCare.gov and most state-based exchanges until this summer, and maybe not until the fall, McDermott says.
“It is my understanding, however, that if these people buy coverage now and can prove that they received unemployment benefits at some point in 2021, then the benefits will be retroactive and they will ultimately be reimbursed for the unnecessary expenses that they incurred. ‘they engaged, “McDermott said.
How to benefit from ACA grants
The Affordable Care Act subsidy expansion is retroactive to January 1 and will continue until December 31, 2022. People must purchase their insurance from Healthcare.gov or their state’s ACA exchange to be eligible. subsidies. The law also created a new special registration period that runs until August 15, 2021.
Some people are still not eligible for subsidies, including most people with incomes above 600% of the poverty line; undocumented immigrants; people who have employer-provided health insurance offers that are considered affordable; and some low-income people in states that have not extended Medicaid coverage.
What you need to know about free COBRA coverage
Many people prefer to keep their employer’s health insurance coverage when they lose their job, even though the cost is often prohibitive. Most employers pay a large portion of the cost to cover workers, but former employees who choose to extend their coverage using federal COBRA law typically have to pay the full premium plus a 2% administrative fee.
Thanks to the new law, employers are required to provide free COBRA coverage from April 1 to September 30 to eligible former employees who have lost their health care coverage due to involuntary termination or reduced hours, explains financial planner and chartered accountant Kelley Long. , consumer financial education advocate for the American Institute of CPAs. The cost to employers will be offset by federal tax credits.
If you’re eligible for other group health coverage – through a spouse, new employer, or Medicare, for example – you won’t be eligible for COBRA Free.
“The intention is to help people who have no other options and who otherwise would not be insured because they cannot afford COBRA,” Long said.
Normally, you have 60 days after losing your job to opt for COBRA coverage, which typically lasts a total of 18 months. If you missed this 60-day window, or if you signed up but then discontinued coverage, you may have another opportunity to sign up. The new law extends the registration period so that people who lost their jobs during the pandemic can receive free coverage. Employers are required to contact eligible former employees by May 31. If you think you’re eligible but haven’t heard from your employer, McDermott recommends contacting your former employer’s human resources department.
There will be a special registration window at the end of September to allow people with COBRA to switch to an ACA plan, McDermott said.
This article was written by NerdWallet and was originally published by The Associated Press. Weston is a columnist at NerdWallet. She is a certified financial planner and author of five books on money, including Your Credit Score. Read more
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