At Samaha, we are a family-based agency that prides itself on keeping abreast of all the changes happening. That way, we can provide a more targeted approach to find out exactly what your goals and needs are. We don’t just sit back to wait for you to contact us, we reach out to let you know about things that might alter from time to time. And one recent development that will likely affect many of our customers is the American Rescue Plan Act of 2021. The plan was created to help many struggling families and individuals who got hit financially by the pandemic of 2020. What does it offer you? This is a brief outline of the major changes and how to maximize your benefit.
What is the American Rescue Plan Act of 2021?
The American Rescue Plan Act 2021 was created to help many who are suffering financial burdens post-pandemic with more affordable health care coverage. Those who might not have been eligible in the past, are now finding that they are included in some significant and substantial savings. Most people who are currently enrolled in a health care program will likely qualify for additional tax credits this year more than ever before. And many will also find that their insurance premiums will decrease after the new savings are put into effect.
Who Qualifies for Savings?
To know whether you qualify for a premium tax credit to lower your monthly premium is to call us. We can us sort through the financial complexities. The amount of your tax credit will be contingent on your estimated household income. So giving us all the specifics will help us find the most savings for you.
People Falling Below 150% of the Poverty Level Can Now Get Plans with Zero Premium and Reduced Deductibles
All premium costs are covered for those 150% below the poverty level, which means even those who have very little income will qualify for free premium plans and low deductibles.
Premium Subsidies Increase for Higher Income Levels with Help up to 400% of the Poverty Level
People Above 400% of the Poverty Level Are Now Eligible for Premium Subsidies
Although not eligible before, thanks to the new changes, no one will be required to contribute more than 8.5% of their total income. Due to the new changes, some people who had independent policies might benefit from looking into Marketplace plans as an alternative. And once more, you now have until May 15 for open enrollment.
Effective Date Runs 2021-2022
The new changes might be temporary, but they will last through calendar date 2022. The specific cutoff dates are yet to be determined. But the relief will be felt immediately once you switch plans according to your eligibility. Once more, subsidies that people currently have will be retroactive to the beginning of 2021. And therefore, can be claimed as a tax refund when you file your 2021 tax return.
What Other Changes are Being Made?
The plan also helps aid those who are unemployed by providing more eligibility for coverage gaps. They will still have to meet the requirements for tax filing purposes. But there are a lot more provisions to help people who are suffering the most find the coverage they need. And the Act also covers temporary COBRA premium subsidies for up to six months through the year 2021.
What Are You Eligible For?
Our mission at Samaha is to find you the lowest cost coverage with the maximum benefit allowed. The Marketplace is a great resource, but it does not explain the whole situation, nor is it as straightforward as it could be. We are a family-owned business that cares greatly about all of our customers. And, to that end, we will continue to search to find you the best price and possible, looking at every avenue possible. Contact us today to discuss how we can get you insured at the best rate for the year ahead.