New health insurance subsidies in Biden's COVID-19 stimulus bill will be available April 1
Source: USA Today
WASHINGTON Millions of people can begin signing up on April 1 for new health insurance premium subsidies made available through the COVID-19 relief package, the Biden administration announced Friday.
The $1.9 trillion stimulus bill President Joe Biden signed into law Thursday increases subsidies to those who were already eligible through state and federal marketplaces. It also makes help newly available to people earning more than four times the federal poverty level.
Premiums will decrease an average of $50 a month per person, according to the Department of Health and Human Services. But some people could save hundreds of dollars each month.
Republicans, who unanimously opposed the legislation, have criticized the subsidies as too expensive and said theyre among the bills many provisions that arent directly related to fighting the coronavirus.
Read more: https://www.msn.com/en-us/news/politics/new-health-insurance-subsidies-in-biden-s-covid-19-stimulus-bill-will-be-available-april-1/ar-BB1ewYRX?li=BBnbcA1&ocid=DELLDHP
TexasBushwhacker
(20,148 posts)because Lord knows, it saves money to have millions of UNINSURED Americans!
SMDH
durablend
(7,456 posts)"They're not tax cuts for billionaires!"
herding cats
(19,558 posts)The extra savings will mean a lot to this Obamacare person whose on a much tighter budget this year. It takes down my increase from last year of more than $100 a month per person for a lesser policy to something at least more affordable for me.
Now that I'm also vaccinated I can worry less about the insane 20% of hospitalization clause, too! I knew if something went bad for me, or my husband, there was no way I'd ever be able to pay that.
BigmanPigman
(51,569 posts)Thanks for the info.
durablend
(7,456 posts)The insurer is sending you bills for $X a month. Are they going to need to recalculate and how long is that going to take to go into effect?
Cal Carpenter
(4,959 posts)but it seems it will mostly require the recipient of the subsidies to apply to get the additional subsidy on their state exchange if there is one, or the federal healthcare.gov site. They can also apply any extra subsidies to an upgraded plan.
From the article in the OP:
"The 14 states that operate their own insurance exchanges are aiming to also start processing the new subsidies on April 1, according to HHS. But those details will be announced by individual states."
"Those already enrolled who dont reapply can still receive the extra savings when filing 2021 taxes next year.
People who already have insurance through an exchange can either apply the new subsidies to their existing plan to lower their monthly payments or can switch plans. Switching could allow someone to buy a plan with a much lower deductible, with the higher subsidy covering that plans higher premium."
-----------
I did read something several days ago that implied that the added subsidy will be retroactive to January 1. I sure hope so. Our share of the premiums went up by a ton this year to keep a halfway decent silver plan. It's more than we can really afford so I'd love to get some of that money back.
LaMouffette
(2,020 posts)Spoken by the same people whose health insurance is subsidized by American taxpayers. And I'm sure they're not on the least-expensive "bronze" plan, like me and my husband, who are both Obamacare members.
And to anyone who gets health insurance through an employer and also resents people getting their health insurance subsidized, please know that employer-provided health insurance costs American taxpayers a lot more than Obamacare subsidies, due to the fact that their employers receive tax deductions on the health insurance they provide to their employees. This "hidden subsidy" in the form of lost tax revenue costs the US government five times as much as Obamacare!
From a July 2017 New York Times article:
As Republican senators work to fix their troubled health care bill, there is one giant health insurance subsidy no one is talking about.
It is bigger than any offered under the Affordable Care Act subsidies some Republicans loathe as handouts and costs the federal government $250 billion in lost tax revenue every year.
The beneficiaries: everyone who gets health insurance through a job, including members of Congress.
Much of the bitter debate over how to repeal and replace the law known as Obamacare has focused on cutting Medicaid and subsidies that help low-income people buy insurance.
But economists on the left and the right argue that to really rein in health costs, Congress should scale back or eliminate the tax exclusion on what employers pay toward employees health insurance premiums. Under current law, those premiums are not subject to the payroll or income taxes that are taken out of employees wages, an arrangement that vastly benefits middle- and upper-income people.
That one policy tweak could reduce health care spending, stabilize the health insurance market and, according to Congressional Budget Office estimates, shrink the federal budget deficit by between $174 billion and $429 billion over a six-year period.
Lawmakers briefly pondered the idea this year but quickly abandoned it, recognizing how politically explosive it would be. Still, as Congress seeks to push ahead with major changes to the health system and the tax code, there has been a growing awareness of how long-established tax subsidies like the mortgage deduction for homeowners have contributed to economic inequality in the United States.
More at:
[link:https://www.nytimes.com/2017/07/07/health/health-insurance-tax-deduction.html|
P.S. And yes, we are also extremely grateful for the extra subsidy for premiums in the Biden relief bill. Thank you, Joe, Kamala, and all of our wonderful Democrats in Congress!
speak easy
(9,189 posts)March 31, or April 2 would have been better.
Say April 1 and some people will think you are joking.
Cal Carpenter
(4,959 posts)so it's not a dumb choice. It's a logical one. April 1 is the beginning of the next month. We need these increased subsidies ASAP.
speak easy
(9,189 posts)Q: When - A: April 1st.
Fail.
Cal Carpenter
(4,959 posts)so we're waiting until May."
Oooookay.
Politicub
(12,165 posts)its April 1? Come on, now.