Potential major good news on ACA premiums

[ncbill]

So it's still 9.78% as the "affordable" standard (employee-only premium) for employer-provided health care?

 

[garyt]

I just checked on healthcare.gov and our insurance costs will drop $80 a month. We live in Mi so trying to find out how our state will handle it.

 

[sengsational]

If you reapply, you quit your current policy and start a new one? So your deductible resets and you have only until December to get past it?

Sorry, I haven't paid much attention to this, so if that's a dumb question, please forgive me.

I'm in a location where the silver and bronze prices are such that I can go 399 FPL and have the PTC completely cover the bronze. I've made an uninformed guess that reapplication is not for me (one can't improve upon 'free'), but never like to assume anything; when it comes to laws, logic goes out the window.

 

[shotgunner]

I am in NH and NH uses the Federal Exchange. I have not received an e-mail or been contacted by either the Exchange or my HI insurer Anthem BC/BS about any change to my subsidy, any need to reapply etc. I logged in this morning to see if my subsidy had increased for the new bill dated 4/1/21. It remains the same, no change to the amount. Oddly my payment history for 2021 is missing when it was there last month. Live chat with Anthem gets nowhere and I could not schedule a call back. Must be lots of questions from people today.

 

[erkevin]

I had to basically re-apply in order to qualify for the subsidy. I kept my same plan- as Sengsational mentioned, it is possible that your deductible could re-set (if you change plans).
My premium decreased $903/month

 

[Aerides]

Mine didn't let me re-apply on healthcare.gov, but I got an email this AM from Florida Blue to call them to update my plan.

 

[Plantman]

My plan premium dropped $91. I was hoping for a free silver plan but no such luck.

 

[PaunchyPirate]

I live in PA and we have our own exchange. The exchange website still indicates they are working on updating the system to reflect the savings for new and existing customers. No added details. If I pretend I want new coverage, it still reflects the old pricing. I guess they didn't make an April 1st switchover.

They have not released any details about how or when the added premium assistance amounts will be applied to existing customer's monthly bills.

 

[RetiredAt55.5]

I live in PA and we have our own exchange. The exchange website still indicates they are working on updating the system to reflect the savings for new and existing customers. No added details. If I pretend I want new coverage, it still reflects the old pricing. I guess they didn't make an April 1st switchover.

They have not released any details about how or when the added premium assistance amounts will be applied to existing customer's monthly bills.

I was hoping Pennie would do this by April 1st. My BC/BS said it could take up to 2 weeks to update their system after Pennie sends them plan changes.

So, I guess I'll pay my April bill, and hope this gets figured out before the May bill. It does lower our copays, so I've been putting off some issues.

 

[BoodaGazelle]

I just called and found that due to a subsidy increase, my net bill for FL Blue Bronze 1449 will be cut in half.... of. course that is only for one month, as I start Medicare May 1. I presume that the rate will be the same, or at least similar, as my DW has to stay on it until 9/22.

 

[Markola]

"Nearly everyone who purchases health insurance under the Affordable Care Act (ACA) Marketplace plans will benefit by the changes enacted as part of the American Rescue Plan Act of 2021. In summary:



Early retirees with an income 100%-150% Federal Poverty Limit (FPL), who already paid little for health insurance premiums, will now pay $0 premiums for Silver Level plans.



Those with incomes from 150%-400% FPL will see substantial reductions in health insurance premium costs.



Those with incomes that exceed 400% FPL will no longer be subject to the ACA “subsidy cliff.” Health insurance premiums costs will be capped at 8.5% of income.



Older early retirees approaching Medicare age will benefit the most because costs rise as we age."





https://www.caniretireyet.com/american-rescue-plan-health-care-early-retirement/

That Kaiser calculator linked to in the Can I Retire Yet? article made my jaw drop. We are 400%+ FPL and the 8.5% cap would itself save us thousands of dollars. Additionally, DW periodically qualifies for UI throughout each year due to her kind of unique, project-based j*b, so I was able to check the UI box. Doing that results in us qualifying for the second lowest silver plan for $0/year (!). Holy moly. You can bet I’ll be chewing on this possibility like a dog with a bone.

 

[erkevin]

I just called and found that due to a subsidy increase, my net bill for FL Blue Bronze 1449 will be cut in half.... of. course that is only for one month, as I start Medicare May 1. I presume that the rate will be the same, or at least similar, as my DW has to stay on it until 9/22.

Nope. Four months. You will get tax credits for Jan, Feb, March, and April.

 

[Ramen]

Sorry if I missed this earlier in the thread, but how long do these changes last? Just for this year? Or beyond? I'm not seeing this in any links above.

I have not reapplied yet, but I'm already wondering whether my HSA Bronze plan will be undercut by a Silver plan with a lower deductible and OOP. If so, what happens if I already made HSA contributions this year? Would I have to reverse them if I switched to a Silver plan?

This is hypothetical, as I have not yet made any HSA contributions. But I plan to. Wondering if I could max them out now and then switch plans this summer.

I guess I should wait and see how these changes might affect me, but I'm just thinking out loud for now. The main thing I'm wondering is my first question above. Are these temporary or ongoing changes?

 

[erkevin]

Ramen- The increased subsidies are for calendar years 2021 and 2022. When you switch from a HDHP to a non, your HSA contributions are prorated for the number of months the HDHP covered you. I believe that April is the month that you have to make changes to your HI in order to receive the increased subsidies. If you wait, then the subsidies are reconciled at tax time

 

[SecondCor521]

Sorry if I missed this earlier in the thread, but how long do these changes last? Just for this year? Or beyond? I'm not seeing this in any links above.

I have not reapplied yet, but I'm already wondering whether my HSA Bronze plan will be undercut by a Silver plan with a lower deductible and OOP. If so, what happens if I already made HSA contributions this year? Would I have to reverse them if I switched to a Silver plan?

This is hypothetical, as I have not yet made any HSA contributions. But I plan to. Wondering if I could max them out now and then switch plans this summer.

I guess I should wait and see how these changes might affect me, but I'm just thinking out loud for now. The main thing I'm wondering is my first question above. Are these temporary or ongoing changes?

You can make an HSA contribution for any months that you were covered by an HSA qualified plan. Metal level doesn't matter, it's just whether it's an HSA qualified plan. My state's website has a handy feature where you can click a checkbox and it will only show HSA eligible plans. *Most* HSA plans in my state are Bronze, but my state has one Silver one.

It's a monthly thing too - the $3,600 or $7,200 or $8,200 or whatever the number is is the annual number, but qualification is on a monthly basis.

You can make the HSA contributions any time between 1/1/2021 and 4/15/2022 - they don't have to be made *while* you're on the HDHP plan.

You can make HSA contributions ahead of time, but if you end up not being qualified, then you can either withdraw the excess contributions plus attributable earnings (much like an IRA overcontribution), or leave it in and pay a penalty until it carries forward to a time when you didn't max out your HSA contributions.

I believe that April is the month that you have to make changes to your HI in order to receive the increased subsidies. If you wait, then the subsidies are reconciled at tax time

Some states - mine included - require neither changing plans nor taking any other action. The higher subsidies will be calculated and applied automatically starting April-ish. Other states are also doing this.

 

[zinger1457]

That Kaiser calculator linked to in the Can I Retire Yet? article made my jaw drop. We are 400%+ FPL and the 8.5% cap would itself save us thousands of dollars. Additionally, DW periodically qualifies for UI throughout each year due to her kind of unique, project-based j*b, so I was able to check the UI box. Doing that results in us qualifying for the second lowest silver plan for $0/year (!). Holy moly. You can bet I’ll be chewing on this possibility like a dog with a bone.

Maybe I'm missing something but if your income is over 400% FPL you would have to pay 8.5% of your income towards the second lowest cost silver plan. How do you come up with $0?

 

[kevink]

Here's the official government fact sheet on these changes:

https://www.cms.gov/newsroom/fact-sheets/extended-access-opportunity-enroll-more-affordable-coverage-through-healthcaregov?fbclid=IwAR0NnsfApVWDozDXfZIWWpwQSHOXOZdgBVwICJUSRb6PsnhDCaPQBKmfJ58

 

[RetiredAt55.5]

Here's the official government fact sheet on these changes:

https://www.cms.gov/newsroom/fact-sheets/extended-access-opportunity-enroll-more-affordable-coverage-through-healthcaregov?fbclid=IwAR0NnsfApVWDozDXfZIWWpwQSHOXOZdgBVwICJUSRb6PsnhDCaPQBKmfJ58

That's a good reference for the changes. Note, though, that article discusses how it'll work (be implemented) by healthcare.gov.

It might work a little different with the state run marketplaces (e.g., maybe you won't have to update your existing application to get the subsidy changes).

 

[shotgunner]

Here's the official government fact sheet on these changes:

https://www.cms.gov/newsroom/fact-sheets/extended-access-opportunity-enroll-more-affordable-coverage-through-healthcaregov?fbclid=IwAR0NnsfApVWDozDXfZIWWpwQSHOXOZdgBVwICJUSRb6PsnhDCaPQBKmfJ58

Thank you, this is helpful. What I learned or had confirmed; the change/increase tax credit is effective Jan 1st, premium payments already made will be reconciled on the filing of 2021 taxes, to activate the new tax credit amount I will have to login to the Exchange, choose change of life event but can use the same income projection and choose the same plan, with luck the new adjusted out of pocket premium will be effective 5/1.

They could have sent subscribers a message with the same information easy enough. I am glad I come to this site once awhile I have learned many valuable and useful things, this is another.

 

[ShokWaveRider]

Great News (OP) We Only have another 3 years to worry about ACA though, then DW goes on Medicare. I am VERY happy with Medicare and my AARP Supplement. Total Annual Expense $3500 including supplement + Medicare Deductible, a bargain by today's standards.

 

[Fermion]

Is Medicare actually better than a super subsidized silver plan though? Our deductible is something like $400 a year with max OOP of $800 and it looks like a monthly premium of $20?

 

[Markola]

Maybe I'm missing something but if your income is over 400% FPL you would have to pay 8.5% of your income towards the second lowest cost silver plan. How do you come up with $0?

I’m suspicious of the results, too, but when I check the box about “Did you qualify for unemployment insurance?” the result is $0 cost. The article Kevink linked above also mentions the UI matter. We’ll see.

 

[Eucerin]

Just checked the auto pay for April, still charged same amount as past month. I suppose I will get the tax credit for 12 month at the end of year. I don't or could think of any life change event to re-set the health insurance.

 

[GTFan]

Is Medicare actually better than a super subsidized silver plan though? Our deductible is something like $400 a year with max OOP of $800 and it looks like a monthly premium of $20?

No way, and others that had CSR'd Silver ACA plans that went on Medicare confirmed this. Medicare is much more expensive than a <200% FPL Silver plan, which is basically free for a lot of folks now with low OOP costs as you said.

Of course you get the better nationwide network for Medicare, which can be a big advantage for some.

 

[erkevin]

Eucerin- my premium doesn't do down until May's payment. If you have an account on healthcare.gov and a current 2020 application, go to the site and click on "update/change plans to save"