With the signing into law of the American Rescue Plan by President Joe Biden on March 11th, not only do most Americans receive stimulus checks, but many Americans also qualify for additional health insurance premium assistance through premium tax credits. In California, we expect to see $3 billion in additional premium tax credits from the federal government on top of the current state and federal premium assistance already available.
One of the biggest parts of the American Rescue Plan is a cap on health insurance premiums to no more than 8.5% of household income towards the 2nd most affordable silver metal plan. Prior to the new law, Californians could pay as much as 18% of their household income, especially impacting the upper-middle class who normally would receive little to no premium assistance. Now, no American should have to pay more than 8.5% of their income towards health insurance, saving many Americans hundreds if not thousands of dollars per year. The new premium assistance lasts through the end of 2022.
Furthermore, if you received at least 1 week of unemployment benefits in 2021, you will be eligible for the most premium assistance available, regardless of your total household income. The additional premium assistance for those with unemployment benefits will go into effect in the summer although anyone eligible for premium assistance can still take advantage of the American Rescue Plan as of May 1st. It is important to act now, you do not want to leave money on the table.
To learn more about the American Rescue Plan, please do not hesitate to contact us to go over your options. At Solid Health Insurance Services, we strive on keeping our clients informed and assisting them in navigating through their health, dental, vision, life and long-term care needs. Please contact us at 310-909-6135 or at firstname.lastname@example.org for us to better assist you.