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HealthCare.Gov Mailing Tax Credit Forms Urging Consumers to Visit Healthcare .gov - CONTACT US BEFORE DOING ANYTHING: For those on the Affordable Care Act plans, you may be receiving emails and forms via regular mail from healthcare .gov / Marketplace stating you qualify for increased tax credits due to the American Rescue Plan Act. We reported this increase in our March newsletter. Please contact us with questions prior to doing anything.

Here is the run down:

Increased tax credits were available April 1st. This includes a tax credit for those people with too high of an income to receive a tax credit currently, and an increased tax credit for those already receiving a tax credit.

There are 2 ways to receive the increased tax credit. Here are the options, along with the pros and cons:

1. You may login and update your plan via the Health Sherpa account that was emailed to you when your originally enrolled or contact us at 800-383-6590 or by replying to this email as we can update the tax credit for you. 

  • Pros: Receive a lower monthly premium going forward for the rest of the year. Since the tax credit is retroactive to January 1st, any additional tax credit will be reimbursed to you at the end of the year. You can also select a new plan if you wish.
  • Cons:  If you change your plan or re-enroll, you will be subject to a new deductible and out-of-pocket maximum. That means you are starting over and will need to meet the deductible and out-of-pocket maximum again. Additionally, the deductible and out-of-pocket maximum will start over again on January 1st 2022.

2. You may continue to pay the same premium you are currently, then receive the tax credit when filing your 2021 taxes.  

  • Pros: You will NOT have a new deductible or maximum-out-pocket. Any claims that have been credited to your deductible and maximum-out-pocket will remain. 
  • Cons: You will pay your current premium throughout the rest of this year and receive the tax credit when you file your 2021 taxes. New premiums and tax credits will be assessed January 1st 2022 so you will receive the increased tax credit applied toward your premiums in 2022 even if you wait to receive the 2021 tax credit.

Our Opinion

We believe it will be in most client's best interest to wait until filing their 2021 taxes to receive the increased tax credits as long as they can afford their current premium. This avoids a resetting of deductible and maximum-out-of pockets, as well as avoiding any errors that may occur. These errors may include healthcare.gov not enrolling a plan correctly, submitting the wrong tax credit and premium to an insurance company, or not cancelling out the old plan. For the most part, people do not experience these issues. However, for those who have, it can be very time consuming trying to correct anything with healthcare.gov's customer service.

Wellmark Blue Cross Will Be Mailing New Insurance Cards: See More Information Below

United Health Care Files for 2022 Rate Increase on Pre-Affordable Care Act Plans: See More Information Below

IRS Updates 2022 Health Savings Account Contribution Limits:

  • Individual Contribution Limit - $3650
  • Individual Out of Pocket Maximum - $7050
  • Family Contribution Limit - $7300
  • Family Out of Pocket Maximum - $14,100

Supreme Court Upholds the Affordable Care Act As Constitutional: Summary -
Medica COVID-19 Vaccine Website and Information
National General has typically been offering the lowest priced 3 year plans for those age 55 and younger. Contact us if you are interested in quotes.

COVID-19 Updates from National General.
Pivot Health is now offering 3 year plans in Iowa.
Wellmark Blue Cross has filed for a proposed rate increase with the Iowa Insurance Division. The proposed rates will go into effect on January 1st 2022 and must first be approved by the Iowa Insurance Commissioner. It is important to note that often, increased tax credit subsidies often off-set the increase in premiums on the Affordable Care Act plans. Wellmark states the following reasoning for their rate increase:

Pre-Affordable Care Act Plans
  • 6% Increase in Claims over $50,000
  • 16% Increase in Pharmacy Costs
  • 47% Increase in Dermatology Costs
  • 82% Increase in Specialty Prescriptions

Affordable Care Act Plans
  • 15% Increase in Doctor Visits, Psychiatric Visits & Physical Therapy
  • 18% Increase in Claims over $50,000
  • 83% Increase in Mental Health Services
  • 181% Increase in Ambulance Services

Proposed Rate Increases
  • Pre-Affordable Care Act Grandfathered HMO plans - 0.0%
  • Pre-Affordable Care Act Grandmothered HMO plans - 10.0%
  • Pre-Affordable Care Act Grandmothered PPO plans - 5.9%
  • Affordable Care Act plans - 11.1%

View Wellmark's Rate Increase Infographic

Wellmark will soon be mailing out new insurance cards. Under the Consolidated Appropriations Act, health insurance cards must now include additional information such as deductibles, in and out of network maximum out of pockets, etc. Please note card and plan information will be the same. You will just have additional information on your card.
UHC has filed for a 25% average rate increase on their Pre-Affordable Care Act plans. While these plans have held very stable premiums in the past, we new the time would come where significant rate increases would be in store. This is due to not only increasing medical costs, but also that there are no new customers allowed in the Pre-ACA risk pool of plans.

While United Health Care has offered the more comprehensive coverage on the 3 year plans, they have also had some sizable rate increases. If you have one of the UHC 3 year plans and would like to review your options, please let us know.

Don't forget the valuable discounts with your FACT Membership through the United Health Care plans.
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If you are new to Oscar, don't forget to set up your online account.

Don't forgot, with Oscar you have $0 Fee Virtual Urgent Care Visits. Click Here to Learn More.
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