NY expands tax credits, lowers health insurance premiums for residents – About Your Online Magazine

More New York residents will be eligible for financial assistance and lower health insurance premiums as part of a federal stimulus package, Governor Andrew Cuomo announced in late March.

Residents will have access to expanded tax credits through the New York health insurance market, NY State of Health, Cuomo announced in a Press release. The reduced credits and premiums are a product of American Rescue Plan, which President Joe Biden signed on March 11.

Biden first announced the plan to combat widespread economic insecurity as a result of the pandemic. In addition to the expansion of tax credits, the plan covers a wide variety of other measures, such as the payment of incentives to individual citizens and financial support to colleges and universities.

Here is an analysis of how the American Rescue Plan will impact health insurance in the state of New York:

Tax credits

Beginning in early April, greater federal tax credits, which reduce the amount individuals are required to pay in federal taxes, will be available to low- and middle-income consumers. Individuals with an annual income of up to $ 51,000 per year and families of four with an income of up to $ 105,000 will be eligible for lower costs on qualified health plans.

People with these income levels who already use the NY State of Health will have to update their information through the organization. The State of Health of NY will update its system to automatically apply the enhanced tax credits to qualified consumers and make higher-income individuals eligible by June.

Donna Frescatore, executive director of the State of NY Health, said in the statement that the organization was working to increase tax credits for New York residents “as quickly and perfectly as possible” to respond to the pandemic’s economic burden.

Extension of open registration period

The State of Health in NY will extend the open enrollment period for residents, meaning that consumers will now have until December 31 to enroll in health coverage.

On February 17, Cuomo announced that the state would extend the open registration period until May 15. The original extension was in response to Biden’s proposal on February 15 executive order to allow more time for US residents to enroll in health insurance and reopen enrollments under the Affordable Care Act, an Obama-era legislation that expanded health eligibility in 2010

Individuals qualified for other NY state health plans, such as Medicaid, Essential Plan and Child Health Plus, can apply year-round.

Lower health insurance premiums

Depending on enrollment levels, New York residents could receive an additional $ 700 million in tax credits in 2021 as a result of the American Rescue Plan, according to the press release.

The state has made more than $ 4.4 billion available to residents to reduce the cost of health plans purchased through the State of NY Health since the ACA was approved. Between 2013 and 2019, the state’s uninsured population was reduced from 10% to 5%, according to the statement.

Cuomo said he is confident that the new measures in New York will result in lower health premiums than ever before, which he believes should be a priority.

“Access to affordable, high-quality health insurance is crucial at any time, but the COVID-19 pandemic has made it even more important to ensure that New Yorkers have insurance if they face the virus or other health problems,” said Cuomo in the release. .

Paula Fonseca