Patients might go to a hospital that accepts their insurance, for example, but get treated there by an emergency room physician who doesn’t. Such doctors often bill those patients for large fees, far higher than what health plans typically pay.
Under the new law, instead of charging patients, health providers will now have to work with insurers to settle on a fair price. The new changes will take effect in 2022, and will apply to doctors, hospitals and air ambulances, though not ground ambulances.
What about taxes?
There’s a change to the earned-income tax credit.
For the tax return you file for 2020, you would be able to use the money you earned from 2019 for qualification purposes instead of 2020, both for the earned-income tax credit and the refundable portion of the child tax credit, according a Democratic summary of the bill.
That could allow additional people to maintain eligibility who might have lost it because they lost their job or worked fewer hours this year.
I have unused flexible spending account money. Any relief there?
Yes. Now, if your employer allows it, you could carry over unused health care or dependent care money and use it in 2021. Ditto for unused 2021 money that you wish to carry over into 2022. The law also allows employers to raise the last eligible age for children’s dependent care to 13, from 12, for the 2020 plan year.
I deferred making my payroll tax payments the last few months. Do I still have to make them up?
Yes, but you can now do so over all of 2021, once the bill passes.
Catch Me Up on Everything Else
The relief agreement isn’t the only way the government has been trying to offer help. Other relief measures are still in effect and some have already been extended.
MORTGAGE FORBEARANCE If you’re struggling to make your payments, you may qualify for a forbearance, which allows homeowners to temporarily pause or reduce payments for up to 180 days (after that, homeowners can ask for an additional 180 days). These rules, which apply to federally backed mortgages, are still in effect as part of the CARES Act relief package passed in March.
Go to the news source: Stimulus Deal Q&A: Second Check, Unemployment Insurance and More