The American Rescue Plan impact on Health Insurance

 

Read Carefully, all what you need to know about the American Rescue plan and Health Insurance

 

On March 11, President Biden signed the American Rescue Plan with immediate impacts on Marketplace. The law extends many COVID-19 relief programs already in place and includes provisions impacting Marketplace.

 

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Two sections of the new law impact current and prospective Marketplace members:

 

1. Marketplace APTC subsidies will be enhanced for 2021 and 2022, allowing eligible consumers to receive more APTC than under current law and eliminating the “subsidy cliff” at 400% FPL
2. People receiving unemployment in 2021 will be treated as earning no more than 133% FPL, unless they are otherwise eligible for Medicaid

• What it does: Lowers consumers’ required contributions at all income levels thereby increasing APTC. Individuals earning 100-150% FPL will be eligible for fully subsidized coverage. Additionally, premiums are capped at 8.5% of income for those above 400% FPL removing the “subsidy cliff.” 
• What’s next: Additional guidance is expected from the Centers for Medicare & Medicaid Services (CMS) and Internal Revenue Service (IRS). State-based Marketplaces (SBMs) will also release information for their states.

Income Range (% of Federal Poverty Level)	Range of Max. Income Contribution (%)
	Current Law	American Rescue Plan
100-133	2.07	0
133-135	3.10-4.14	0
150-200	4.14-6.52	0-2
200-250	6.52-8.33	2-4
250-300	8.33-9.83	4-6
300-400	9.83	6 -8.5
400+	No Subsidy	8.5

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COBRA Coverage: 

The final bill covers 100% of COBRA costs for people who have lost employer-sponsored coverage, starting on April 1, 2021 and ending on September 30, 2021. 

 

A few Important Points:

• This will only apply to people who were involuntarily terminated.
• People can't take the COBRA subsidy if they are now eligible for other coverage (including a new group plan or Medicare )
• The federal government will have to produce new model notices within 45 days of March 12, 2021, which employers will have to send to people who become eligible for the COBRA subsidy. 

What if I underestimated my income in 2020?

People who underestimated their income in 2020 won't have to pay back APTC when they file their axes. This is a one time deal!!

 

Pregnancy and Medicaid Continuity?

Generally, pregnancy Medicaid continues for 60 days after birth, but now it will extend a full 12 months. Thus will stick around for 7 years!

 

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