Washington Report

Advocacy Updates from Washington D.C.

American Rescue Plan Health Insurance Changes

The American Rescue Plan included two health insurance related changes regarding access to premium subsidies in the Affordable Care Act markets that may help members better afford health insurance coverage.

For the rest of 2021 and for all of 2022, households are newly eligible for a premium subsidy for an Affordable Care Act individual health insurance plan if the employer does not offer an affordable/minimum value plan and your household income up to 400% above the Federal Poverty Level (FPL). This cutoff generally translates to $51,000 for an individual and $106,000 for a family of four. Prior to this change in the law, only individuals and families with incomes below 400% of FPL were eligible for a premium subsidy.

Also, for the rest of 2021 and for all of 2022, subsidized policyholders would be eligible for a larger premium subsidy. For example, for low-income individuals and families (with income between 133% and 150% of FPL), the government will pay 100% of the premiums for their ACA insurance plan. Individuals and families with income at or above 400% of FPL will only be required to dedicate 8.5% of their income toward the cost of an Exchange plan (down from about 10% under current law).

Check out NAR’s summary of these changes and more, which is for general purposes only. If you believe you are eligible for this new assistance, please contact an insurance professional to discuss options.

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