1) there's no more 400% subsidy cliff?
how does that work?
The amount you pay is based on two factors: the benchmark silver plan cost and your income relative to the Federal Poverty Level ('FPL').
Prior to the American Rescue Plan ('ARP') people with incomes between 100% and 133% FPL would contribute 2% of household income to premium for the benchmark silver plan. This contribution percentage would increase as income relative to FPL increases until it reaches 400% FPL at which point the premium tax credit would disappear completely. This caused a "subsidy cliff."
100% FPL is roughly $12,760 for a single person, meaning their premium costs would be capped at $255 per year or $21.25 per month. If the benchmark silver plan costs $500 per month they get a tax credit for the difference, or $478.75 per month. A single person at 400% FPL ($51,040 household income) has to contribute 9.78% of household income to premiums, or $415.98 per month. With the same $500 per month benchmark silver plan their tax credit is $84.02 per month. If their household income increases to ~$51,100, a difference of $60, they "graduate" out of the tax credit program and lose the $84.02 per month tax credit, or just over $1,000 per year.
Under the ARP the 400% FPL "subsidy cliff" is gone for 2021 and 2022. If your benchmark silver plan costs more than your household income contribution amount you will be eligible for a tax credit on the difference without regard to FPL. Put another way, in the example above earning the extra $60 in income and pushing household income to 401% FPL will not cause you to become ineligible for the $84.02 per month tax credit.
On top of this, the ARP reduces the household contribution amounts by about 2% in 2021 and 2022. Whereas before someone at 100-133% FPL was expected to pay 2% of household income with a sliding scale to 9.78% of household income at 300-400% FPL in these two years the scale starts at 0% of household income for 100-133% FPL and caps at 8.5% of household income at 300%+ FPL.
2) i read There's a subsidy tax holiday for 2020 meaning if you said you were under 400% but when you file your taxes in 2021, you were actually over 400% then you dont have to pay back the subsidies.
Does this apply to 2021 when you file in 2022?
The clawback prevention ONLY applies for tax year 2020. tax year 2021 will revert to normal, in which the IRS can recover ineligible tax credits subject to certain income limitations.
3) Biden re-opened Obamacare signups at healthcare.gov.
i signed up last year (2020) for dental insurance that covers cleanings/fillings/root canals/crowns. ($32/month)
it has a 12 month waiting period for root canals/crowns.
i got my crown this year (feb 2021).
with this new enrollment period, can i choose to cancel my dental coverage without penalty?
Technically, you could always cancel dental without penalty, all you have to do is stop paying premiums.
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