The Supreme Court has rejected a third major challenge over the constitutionality of the Affordable Care Act (ACA), or Obamacare.
This legal challenge was presented by a group of 18 states led by Republicans who argued that the individual mandate (the rule that requires all Americans to obtain health insurance or face an income tax penalty) was unconstitutional.
In response to the court’s decision, President Joe Biden released a statement saying that his administration can now hope to continue building on the law, an effort that he said began in March with his COVID relief bill from $ 1.9 trillion.
That bill included a provision that reduces health care costs and expands coverage for millions of Americans.
Here’s how you can take advantage of the new grants and save up to 25% on your health plan before open enrollment ends on August 15.
Obamacare plans are cheaper than ever
When the ACA was passed in 2010, it made health insurance more affordable for millions of Americans. But even with subsidized plans, health care costs could still eat up a large chunk of income for middle-class Americans.
Biden’s bill guarantees that in the future, policyholders will pay no more than 8.5% of their income on health coverage, compared to 10% previously. And low-income members will receive subsidies that eliminate their premiums entirely.
The new rules also open assistance to everyone earning more than 400% of the federal poverty level, which equates to approximately $ 51,000 for individuals and $ 104,800 for a family of four.
With these changes in place, 15 million uninsured Americans now qualify for financial assistance and another 9 million with subsidized plans can receive even more help.
Since the grants became available April 1, Biden says more than 1.2 million Americans have taken advantage of the special enrollment period to sign up for a new health plan.
How much have the costs come down?
On average, your premium will decrease by about $ 50 per month, thanks to subsidies from the Biden administration.
And if you’re below that income threshold of $ 51,000, you could find a new health plan for about $ 1,000 less per month than before the bill was passed.
After the passage of Biden’s COVID relief bill, out-of-pocket costs dropped significantly.
A new insured enrolled in a plan from February 15 through March would have paid a monthly premium of $ 117. Now, with subsidies included, that premium has been reduced to $ 86, according to figures from the Department of Health and Human Services.
If you want to find out how much you the family could save, this cell phone subsidy calculator can give you a good approximation of your discounted rates.
That means if you need a little extra money to cover household expenses or pay the debtWith these new premiums, you could soon free up hundreds of dollars in your monthly budget.
What you have to do?
If you already own an Obamacare policy, some action is required on your part to get these reduced premiums in your healthcare account.
First, you will need to go back to the website where you initially purchased your health insurance plan and confirm that you want the new and expanded tax credit for your existing plan.
Once there, you will have to update your preferences; Otherwise, you will continue to pay your current price until next spring, at which point you will get the difference back in the form of a refund of your 2021 taxes.
Didn’t you buy your plan through the ACA Marketplace? In that case, you will have to go back, cancel it, and switch to an eligible plan.
You have until August 15 to take advantage of the special enrollment period, but take action immediately will make sure you get the new rates starting July 1.
What to do if you need more money now
Most people will have to wait several weeks or even a year to see the difference in their bank account. If you need to add a little more to your monthly budget right now, You have few options.
Keep your insurance savings going. Don’t stop savings with just your health insurance plan. With a digital broker, you could Get a near-instant quote for affordable life insurance and you could too knock down your home insurance bill by hundreds each month.
Refinance your mortgage (if you have one) and cut your monthly bill. If you haven’t been looking for a better interest rate on your home loan, now is the time. Rates are still at some of the cheapest levels in history and refinance could save you thousands of dollars for the rest of this year. Mortgage technology and data provider Black Knight says 14.1 million homeowners could refinance and lower their monthly payments on average $ 287.
Turn your pennies into a wallet. You may not have a lot of money to spare these days, but there is a simple way to change that. Download a popular app that lets you invest your “spare change” and turn your pennies into a diversified portfolio.