The American Rescue Plan (ARP) was recently signed into law and has helped reduce the cost of health coverage under the Affordable Care Act (ACA). This is the largest expansion of the ACA since it was signed in 2010. This plan expands subsidies significantly, increasing subsidies for those who qualified before and for those who have never previously qualified.
Let us look at how this new bill affects your health insurance policy
1.Policyholders who already qualified for subsidies will see larger subsidies. This includes people who make up to 400% of the federal poverty level, which is $51,520 per individual or $106k for a family of four. These persons will enjoy significantly higher savings than they did before.
2.Those that were unable to qualify for subsidies will now be able to do so easily. If you are among those making up to 400% of the federal poverty level and you previously did not qualify, now is your time. This new bill caps the percentage of income paid for coverage up to 8.5% of your household income, making health coverage a lot cheaper if you were previously unable to qualify for a subsidy because of your high income.
3.It also includes subsidy guarantees for enrollees receiving unemployment compensation. If you have received unemployment compensation in 2021, you may qualify for significant subsidies irrespective of your income.
4.The Consolidated Omnibus Budget Reconciliation Act is covered at 100% until September 2021. If you experienced an involuntary job loss, you could get the cost of this health plan covered from now through September.
How These New Subsidies Affect Consumers
Most consumers will see higher subsidies for their plans thanks to the American Rescue Plan, which increases the amount of premium subsidy for all households earning between 100 to 400% of the federal poverty level. The ARP also extends subsidies to those above 400%. Before now, workers earning higher than 400% of the federal poverty level were ineligible for subsidies. They can now qualify and will enjoy huge savings.
Key Statistics at Play
- Four out of five policyholders can now find a plan for $10/month or less. More than 50% can find a silver plan for $10/month or less.
- People will be charged less for premiums, with an average of $50 less per policyholder, on their monthly payments.
- One out of four HealthCare.gov applicants can now upgrade to a better plan with lower out-of-pocket costs.
- 730,000 uninsured Hispanic and Latin Americans are now eligible to spend less on health care insurance, and up to 580,000 will be eligible for zero-dollar benchmark Marketplace plans.
- 360,000 uninsured African Americans will now spend less on health care insurance, and up to 328,000 of them can qualify for zero-dollar benchmark Marketplace plans.
- 48,000 uninsured American Indians and Alaska Natives will be newly eligible to save money on health care coverage, and over 20,000 of them will be eligible for zero-dollar benchmark Marketplace plans.
- 197,000 uninsured Asians, Native-Hawaiians, and Pacific Islanders are now eligible to save money on health care insurance, and up to 50,000 can qualify for zero-dollar benchmark Marketplace plans.
For more insurance questions, contact the experts at Randy Jones Insurance. We offer health coverage plans at affordable rates to suit your health care needs.