April 2, 2021
Agency
American Rescue Plan and the Marketplace
The American Rescue Plan, signed by President Biden this month, incorporates big savings for Americans who buy health coverage through the Marketplace. The changes expand access to premium tax credits and increase the amount of premium tax credits that people can receive.
The plan:
- Removes upper income limits for premium tax credit eligibility
- Sets maximum premium contribution to 8.5 percent of household income for eligible enrollees
- Gives additional financial assistance to people who are eligible for or receiving at least one week of unemployment benefits in 2021
- Forgives of excess premium tax credits given in 2020
- Provides COBRA premium subsidies through Sept. 30
March 17, 2021
AgencyAmerican Rescue Plan and the Marketplace
- President Biden signed the American Rescue Plan Act of 2021 (ARP) into law on March 11, 2021. ARP makes major improvements in access to and affordability of health coverage through the Marketplace by increasing eligibility for financial assistance to help pay for Marketplace coverage.
- The new law will lower premiums for most people who currently have a Marketplace health plan and expand access to financial assistance for more consumers.
- Under the new law, many people who buy their own health insurance directly through the Marketplace will become eligible to receive increased tax credits to reduce their premiums. Starting April 1, 2021, consumers enrolling in Marketplace coverage through HealthCare.gov will be able to take advantage of these increased savings and lower costs.
- Premiums after these new savings will decrease, on average, by $50 per person per month or by $85 per policy per month. Four out of five enrollees will be able find a plan for $10 or less/month after premium tax credits, and over 50% will be able to find a Silver plan for $10 or less.