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New COVID-19 Relief Law May Save You Hundreds in Health Insurance Premiums
Posted by L & A Insurance Services on
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Some 14 million people who buy individual and family health insurance via the Affordable Care Act exchanges will be getting a break.
The American Rescue Plan Act, the new $1.9 trillion COVID-19 relief bill signed into law in March by President Biden, expands the number of people who can qualify for subsidized premiums for individual health insurance purchased via the ACA exchanges.
This will make health insurance more affordable for many people who could not qualify under prior law because their incomes were too high and increase the benefits for those already receiving a subsidy on the exchange.
The American Rescue Plan Act (ARPA) represents the most sweeping changes to the ACA since the law passed in 2010. Among its provisions:
ACA Insurance premium subsidies are extended to families earning more than 400% of the federal poverty level — equivalent to $51,000 for single taxpayers and $104,800 for a family of four.
The maximum out-of-pocket insurance premium cost for most enrollees is cut from nearly 10% of income to 8.5%. Some low-income enrollees will see their ACA insurance premiums offset entirely.
Laid-off employees will receive up to six months of free COBRA coverage, ending in September. This extends to employees who were laid off early as November 2019.
Food stamp benefits are increased 15% from June to September.
Child tax credits are increased from $2,000 to up to $3,600 per child.
Unemployment recipients will receive an additional federal benefit of up to $300 per week through September 6. Up to $10,200 in unemployment benefits are tax-free.
Automatically qualify for zero premiums if you received an unemployment check this year.
Bronze plan enrollees are likely to find a Silver plan at the same or lower cost.
Act by May 15
If you missed the ACA open enrollment period that expired on Dec. 15, don’t be discouraged. You can still benefit from ARPA’s provisions. A recent executive order from President Biden created a new open enrollment that lasts from Feb. 15 to May 15.
If you are enrolled miss this deadline, you will receive any additional subsidies you are owed when you file your 2021 tax return.
For more info, view my instructional video on this topic here.
Still confused? You’re not alone. That’s what we’re here for. We can help you understand the law, and help you make the health insurance decision that works best for you. Request an appointment today at my online calendar.