How the American Rescue Plan Protects Your Health Care Coverage and Your Out-of-Pocket Costs

Starting April 1, generous subsidies will be available on the Marketplace. Update your income changes to lower your premium during the Special Enrollment Period which goes through August 15!

  • People with incomes 150% of the Federal Poverty Level (FPL) won’t have to pay anything towards a premium after the subsidy boost for the second-lowest-cost Silver plan.
  • For the first time, people with incomes above 400% FPL will receive a subsidy to ensure that folks will pay no more than 8.5% of their household income towards a premium.
  • Anyone, including people with income changes due to unemployment, reduced hours, etc., will be protected from having to pay back their premium tax credit when they file their taxes next year.
  • Anyone who has received unemployment benefits during any time in 2021 will be eligible for the second-lowest-cost Silver plan with zero monthly premium costs in 2021 only.
  • These increased subsidies are for coverage from 2021 through the end of 2022.

Premium Assistance for COBRA

  • There will be 100% premium assistance for COBRA from April 1, 2021, through September
    2021, if your COBRA coverage isn’t exhausted before then. Premium assistance ends when coverage is exhausted.
  • The assistance doesn’t count as income.
  • The list of qualifying reasons to enroll in COBRA remains the same, but the American Rescue Plan (ARP) adds an extended period for enrollment.
  • COBRA subsidies aren’t available to people who can enroll in another group health plan, a flexible spending arrangement, a qualified small employer health reimbursement arrangement or Medicare.

COVID-19 Vaccination, Testing, and Treatment

  • The ARP ensures coverage of coronavirus testing, testing-related services, vaccination, administration, and COVID-19 treatment services with no cost-sharing and with 100% federal matching funds for Medicaid beneficiaries.
  • Under ARP, uninsured individuals, and all CHIP and Medicaid beneficiaries are eligible for these services.
  • Coverage for coronavirus testing, testing-related services, vaccination, administration, and COVID-19 treatment services began on March 11, 2021, and lasts at least one year after the COVID-19 Public Health Emergency Ends for all aforementioned groups.
  • The federal government will reimburse providers 100% of the cost for COVID-19 testing, treatment, and administering the vaccine to people who are uninsured and underinsured.