Health insurance costs set to drop
under The American Rescue Plan

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President Biden signed the $1.9 trillion coronavirus relief package on Thursday, March 11th, 2021. The colossal bill, known as the American Rescue Plan, allocates money for vaccines, schools, small businesses and anti-poverty programs such as an expanded child tax credit that will mean new monthly payments to many parents.

Private health insurance through the nation’s public exchanges is set to become more affordable — at least for a couple of years.

Those changes include increasing premium subsidies (technically tax credits) that are available through the federal marketplace and state exchanges for 2021 and 2022, expanding who qualifies for the financial help and forgiving amounts due by taxpayers who received too much in subsidies in 2020 (and minimizing that issue for 2021).

The majority of the 11.5 million people already enrolled in exchange-based health plans receive premium tax credits. Those individuals or families would be able to recalculate their subsidy after the new rules take effect.

Premium subsidies will be enhanced for 2021 and 2022 (“Enhanced APTC”):

  • 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.

Required Income Contribution - Current vs Old Law Comparision
Monthly Premium - Comparison

What does this mean for YOU ?

If you have not been able to obtain insurance coverage previously due to high premiums, this is your opportunity to enroll. The American Rescue Plan will dramatically improve health insurance access and affordability.

We understand it may be difficult to keep track of the constant changes happening in health insurance coverage and premiums.

Our team at Doctor Insurance is working closing with the health insurance marketplace to ensure you receive the best affordable coverage. If you are interested in working with us to get the best affordable coverage to feel free to contact us at (855) 300-2508.

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