American Rescue Plan & Health Insurance Marketplace
Highlights of Changes to Health Insurance and Marketplace Plans under American Rescue Plan 2021
Increased Premium Subsidies Overall, the Subsidy (APTC - Advance Premium Tax Credit) you receive may increase substantially. Example a family of 4 with income in the mid $60,000 will see their subsidy increase by some $250 a month, lowering their net premium by 50%. The increased subsidies are valid for 2021 and 2022 tax years.
These new rates will be posted to Healthcare.gov and the software we as agents use by April 1. In the meantime, the Kaiser Foundation has a calculator here
How do I change my Subsidy and receive the increased benefit?
After April 1 and to May 15, we may update your Marketplace account to reflect these changes. If you like, you can leave your subsidy as is. The increased tax credit will be adjusted on your 2021 tax return.
Let’s start with this checklist with your updated information for us to assist you: ACA Checklist
Can I change my plan and coverage? Yes. During this SEP ( Special Enrollment Period ) February 15 – May 15, 2021, you may do so. Many people will benefit from a Silver plan with copays and lower deductibles than a current Bronze plan. IMPORTANT – Plan change will reset your deductible and copays paid back to zero. If you have had medical expenses during the first part of the year, we need to look closely at this.
UNEMPLOYMENT and Increased Benefits A major provision of the American Rescue Plan ensures that most Americans who receive at least one week of unemployment compensation at any time in 2021 will be able to buy a Silver health plan with $0 premiums. You should apply and select a plan by the end of March in order to enroll in coverage starting April 1. After April 1, you can come back in to update your application and confirm your current plan with the updated tax credits. Later this year, you may be able to receive another increase in the premium tax credits available to you.
HealthCare.gov will have more information available in the summer once these additional savings are available for consumers who have received unemployment compensation during 2021. At that time, you can come back to HealthCare.gov to update your application and current plan with more tax credits to reduce your premiums for the remainder of the year.
NEW – Subsidies available for folks beyond the "Income Cap" Previously, individuals and families that made above specific income were not eligible for subsidies. That “Income Cap" has been removed for 2021 & 2022.
If your income is greater than 400% of Federal Poverty Line - $51,000 single, $68,000 couple, $104,000 family of 4 – you may qualify for subsidy.
EXAMPLES Single person in mid thirties with $60,000 may now receive a subsidy of $240 monthly. Married Couple in early fifties with income of $85,000 may now receive a subsidy of $1,300 monthly.
MAJOR CHANGES and OPPORTUNITIES As has been said “Elections have consequences". We are your trusted and experienced agents and advisors. With the passage of the American Rescue Plan, we have the opportunity to help bring the benefits of these major changes to you. As Always: We appreciate the opportunity to work with you. And welcome the opportunity to help your friends, family and business associates with all of their insurance needs too!