Effective April 1, 2021, consumers have more insurance options and the opportunity for increased savings on their high-cost insurance plans.
The American Rescue Plan (ARP) signed into law in March of 2021 by President Biden may allow consumers that are not currently insured to take a second look at their insurance options. Under ARP, a special enrollment period to enroll in Marketplace coverage has been extended through August 15, 2021.
This means that anyone without coverage has the opportunity to find a plan that fits their budget. Further, the new law expands the tax credit that consumers formerly received to decrease the premium payments for coverage. Consumers may also change plans if they are already enrolled.
According to the Kaiser Family Foundation, consumers below 150% of the federal poverty level may now qualify for a $0 premium silver plan. Additionally, anyone above 400% of the poverty level who did not qualify for tax credits is eligible for financial assistance. Under the new law, premiums can not be above 8.5% of income, allowing upper-income consumers the opportunity for reduced costs.
What Changes Have Been Made Under The American Rescue Plan (ARP)?
Other ARP changes include eliminating the repayment of the premium tax credit for those that underestimated their income for 2020. Previously, the overpayment of the tax credit was collected when taxes were filed. For 2020, that stipulation has been dismissed. If you have already filed your taxes, more information will be shared this summer about reclaiming the overpayment.
Check To See if You’re Eligible for Tax Credits
Consumers that are receiving unemployment and COBRA insurance also have the opportunity for financial assistance. According to the ARP, qualifying individuals may receive tax credits that will pay for their premiums. Watch for correspondence from COBRA and the insurance company in the mail and follow the guidelines listed in the notification.
Keep in mind that stimulus payments are considered tax credits and NOT counted as income for insurance or other assistance programs. However, all income, including unemployment income, should be counted and included on the application for coverage.
There is an additional site that will help determine the cost of coverage.
For additional resources, visit the following sites:
- FACT SHEET: American Rescue Plan and the Marketplace
- New, lower costs on Marketplace coverage
- Text – H.R.1319 – 117th Congress (2021-2022): American Rescue Plan Act of 2021
- Low Cost Marketplace Health Care, Qualifying Income Levels
The Family Health Clinic Can Help You Navigate Your Insurance
Insurance is confusing for many that are seeking coverage. You may wonder if qualifying for extra help is possible. There are several options for coverage, including Medicaid, Healthy Indiana Plan, Marketplace, Medicare, private insurance, and employer-based plans.
The Family Health Clinic accepts all types of insurance. There is also a sliding fee scale to offset the cost of high deductible plans and assistance for those without insurance.
If you would like to speak to one of the Health Insurance Navigators at the Family Health Clinic call 800-321-5043 and choose option #5.
