Your Health Insurance Premium May Be More Affordable in 2021
In March 2021, President Biden signed H.R. 1319, or the American Rescue Plan. This plan got a lot of publicity because it included a third stimulus payment, which helped struggling Americans catch up on bills and Covid-related expenses. Along with individual payments, the bills included a wide range of provisions, including one to make health insurance more affordable for millions of people.
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What Did the American Rescue Plan Change?
The Subsidy Cliff
If you make less than 400% of the federal poverty line and you purchase the benchmark plan, you qualify for premium tax credits. However, if you make more than 400%, you do not qualify for tax credits, even if health insurance premiums take up a significant portion of your income. Under the American Rescue Plan’s provision, no one enrolled in a Marketplace plan pays more than 8.5% of their income for health insurance, regardless of income.
Full Premium Coverage for Unemployed Americans
The American Rescue Plan also includes a provision to let those receiving unemployment compensation in 2021 enroll get premium-free or nearly premium-free health insurance. Under this provision, anyone who received unemployment in 2021 will not have their income counted at more than 138% of the poverty level to determine how much of a subsidy they qualify for. This lets them qualify for a premium-free or nearly premium-free silver plan.
The American Rescue Plan also helps people who lose their employment-based health insurance coverage, either because they lost their job or their hours were reduced, to keep their coverage for six months. The plan created a new subsidy that fully covers the cost of COBRA coverage from April 1 through September 30, 2021.
Are These Provisions Permanent?
These provisions are temporary, and when they run out depend on the subsidy.
- The COBRA subsidy lasts through September 30, 2021.
- The adjusted subsidy for unemployed Americans is only for 2021.
- The eliminated subsidy cliff is for 2021 and 2022.
What If I Am Already Enrolled in a Plan?
If you are already enrolled, you can update your application and enrollment to get new eligibility. A health insurance agent can help you make necessary updates to take advantage of these subsidies.
What If I Qualify but Do Not Take Action?
Even if you do not take action, you will still benefit from these lower premiums. You will receive this additional benefit as part of your premium tax credit when you file your federal income taxes next year.
Getting Affordable Health Insurance with Nevada Insurance Enrollment
At Nevada Insurance Enrollment, health insurance agents provide up-to-date information on available health insurance plans and the best ways to get affordable coverage. Whether you are currently enrolled in a plan or you have not had health insurance for a while, we can help you get affordable coverage.
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