In case you haven’t heard, earlier this year, President Biden passed the American Rescue Plan Act (ARP), which extended health insurance premium tax credits to more Americans. What this means is that you can now qualify for premium tax credits that you probably couldn’t have before. So, how much can you save exactly? Well, to find out how much you and your family can save on health insurance premiums, speak with a licensed EZ agent. Our agents will make sure to find the most savings for you – you could save anywhere from $50-$1000 a month!
What Is The Premium Tax Credit?
In 2014, the Affordable Care Act (ACA) established the premium tax credit so that individuals or families with low or moderate incomes could afford health insurance on the Health Insurance Marketplace. Premium tax credits help you pay for a portion of your monthly insurance premiums; you can choose to have payments of the premium tax credit go directly to insurers to pay a share of your monthly insurance premiums, or wait until you file taxes to claim them.
Do You Qualify?
Since the passage of Biden’s American Rescue Plan Act, premium tax credits are now available to individuals or families with incomes between the federal poverty line and 400% of the federal poverty line. It also requires that Americans pay no more than 8.5% of their income on health insurance premiums, and provides a larger tax credit to people who already receive financial assistance. To qualify:
- You must prove you do not have access to an affordable employer-sponsored plan.
- You must prove you are not eligible for Medicare, Medicaid, or TRICARE.
- You cannot be claimed as a dependent by another taxpayer.
- You must file a joint federal income tax return if you are married; you cannot file a married filing separately tax return (unless you’re a victim of domestic abuse or spousal abandonment).
- You must have a household income that falls within a certain amount.
It is important to note that you will not be eligible for the premium tax credit if you buy a plan outside of the Marketplace or exchange.
How Much Will You Save With An EZ Agent?
Our agents are highly trained and work with the top-rated insurance companies in the nation, making it easier for them to compare plans and find ways to save you the most money. Between the premium tax credits and your agent’s comparison shopping, you can expect to see a drop in premiums of $50 a month or more! With the new law:
- An individual making $19,000 or less will not have to pay a monthly premium for health insurance.
- Couples who earn more than $70,000 together will save $1,000 per month on their health insurance monthly premiums.
- A family of 4 with an income of $90,000 will pay about $200 less in health insurance premiums.
If you buy a health insurance plan during the Open Enrollment Period, or switch plans, you will be able to receive the tax credits. So, what better time than now to find an affordable plan and save money? Comparing plans is the best way to find an affordable plan that provides the right level of coverage for you, but before you start doing the work of comparing on your own, come to EZ. We will make the process quicker and easier by comparing available plans in your area in minutes. Our licensed agents work with all the top-rated insurance companies in the nation and can go over your budget and needs, and find the best plan for you and your family. We compare plans and offer guidance at no cost to you. To get free quotes, simply enter your zip code in the bar above, or to speak directly with an agent, call 888-350-1890.