Nov. 27—Massive subsidies, created during the COVID-19 pandemic when millions of Americans lost their jobs, were set to expire at the end of this year, driving steep increases in monthly health care costs for middle and middle income earners. weak. households.
Hawaii residents who need health insurance at the start of the new year will be able to take advantage of extended federal subsidies that can reduce their premiums for Affordable Care Act plans to less than $10 a month thanks to a provision of the Inflation Reduction Act passed by Congress in August.
The hefty subsidies, created during the COVID-19 pandemic when millions of Americans lost their jobs, were due to expire at the end of this year, leading to steep increases in monthly healthcare costs for middle- and low-income households. . They have been extended until 2025.
The registration period ends December 15 for a cover that begins January 1st and January 15 for a cover that begins February 1st. However, the federal government has also extended the year-round application period to 2023 for low-income applicants, which includes those whose annual income can reach 150% of the federal poverty level – $20,385 for a single person and $34545 for a family of three.
Health insurance plans, known as Obamacare, provide an important coverage option for individuals and their families who do not receive insurance through an employer and are not eligible for Medicare or Medicaid. Prior to the inception of Marketplace Plans, this segment often faced exorbitant premiums or was unable to qualify for a plan. In Hawaii the plans are especially helpful for independent contractors and part-time employees who don’t work enough hours to qualify for mandatory health insurance through their employer.
Some 22,327 Hawaii residents were enrolled in a plan in 2022, according to the, a figure that has been steadily rising since the market plans launched in 2014.
The Biden administration has estimated that 80% of candidates should be able to come up with a plan that costs $10 or less per month with subsidies, although plans with higher monthly premiums have better limits on out-of-pocket expenses. Applicants earning less than 400% of the federal poverty level: $53,360 for a single person and $11100 for a family of four – can take advantage of the credits, although people earning more than that can also qualify for a subsidy depending on the cost of the plans.
For low and middle income Hawaii residents, the subsidies, which come in the form of tax credits, can reduce monthly costs, called premiums, by several hundred dollars a month, according to a review of plans available on health.gov. Kaiser and the Hawaii Medical Services Association offer a range of options in Hawaii.
A single person in their 40s who earns $42000 per year are eligible for a tax credit that reduces their monthly cost of health insurance by $385, according. The grant knocks a Kaiser bronze plan down to as little as $1.89 a month. The plan includes a $7500 deductible, the amount you pay for medical services before coverage begins, and a $9,000 maximum out-of-pocket, which is the maximum you will pay for covered medical care in one year. Once the maximum is reached, your insurance covers 100% of the covered costs.
At the other end of the spectrum, the cost of a non-subsidy Kaiser platinum plan is $704 one month, which is reduced to $319 a month with the tax credit. The plan has no deductible and a $3000 annual ceiling disbursed.
Residents currently enrolled in plans should transfer to the same or similar plan if they make no changes to their coverage. Hawaii Department of Commerce and Consumer Affairs said residents should receive a letter advising them if they have been successfully re-enrolled. But residents are encouraged to reconnect to health.gov and review the options available for 2023. Package prices change and subsidies depend on income levels.
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