With the new $1.9 trillion COVID-19 stimulus signed into law An individual making $25,760 or a family of four making $53,000 will only have to pay up to 2% of their household income for health insurance premiums vs. the current 6.52%. Middle-class households making between 400-600% of the Federal Poverty level will also benefit with premiums capped to 8.5% of the household income.
The stimulus should benefit 29 million Americans who pay for their own health insurance through an exchange such as Covered CA or who are currently uninsured (15 million Americans). While California implemented its own subsidy expansion to 400-600% of the Federal Poverty Level or FPL in 2020, the federal expansion benefit will be richer. Peter Lee, the excecutive director of Covered CA, spoke with the LA Times and stated “This new federal subsidies will build on California’s experience, and for consumers this new assistance will go even further in making healthcare affordable.” The Federal expansion of subsidies is expected to save California $350 million per year.
To find out if you qualify for the additional premium assistance, please wait for Covered CA to update their quoting systems to get an accurate estimate. The new subsidies will be retroactive to January 1st, 2021 and the new funding is expected to last through the end of 2022. The Biden administration is expected to try to implement a more permanent subsidy expansion in the near future.
If you have any questions about your health insurance benefits and/or would like an independent health insurance quote, please contact us at info@solidhealthinsurance.com or at 310-909-6135. At Solid Health Insurance Services, we strive to keep our clients informed about their benefits so that they may get the most benefit out of their health plans.