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Private Health Insurance and the American Rescue Plan

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The American Rescue Plan Act of 2021, also called the COVID-19 Stimulus Package or American Rescue Plan (ARP), is a $1.9 trillion economic stimulus bill passed by the 117th United States Congress.

It makes major changes to the health insurance subsidies available to people who buy Obamacare (the Affordable Care Act).

There's A Special Enrollment Period

This now allows people to shop for, enroll, or reenroll in health coverage during a special enrollment period that expires on August 15, 2021.

The special enrollment period may be different in states that operate their own exchange.

Call (877) THE HALO for more information.

Summary Of The Health Insurance Subsidies

Under the ARP, in plan years 2021 and 2022, people who purchase coverage through the Health Insurance Marketplace will be able to receive larger premium tax credits that will significantly lower the cost of their coverage.

With these new subsidies, 80% of enrollees will be able to purchase a plan for $10 or less per month and more than half will be able to enroll in a Silver plan for $10 or less per month.

Those with incomes 100% to 150% of the federal poverty level (FPL) could enroll in a benchmark Silver plan with a premium of zero dollars.

We can help you calculate the FPL, so give us a call at (877) THE HALO

For the first time, middle-income individuals and families with incomes at and above 400% FPL, or $52,040 for a single adult and $104,800 for a family of four, will be eligible for premium subsidies.

This means their premiums will be capped at no more than 8.5% of their annual household income. As a result, many middle-income individuals and families could save thousands of dollars a year on their health insurance premiums.

How will people benefit from the new subsidies? 

It depends on factors like age, zip code, and income.

Here are a few examples of how much an eligible person could save, based on calculations from ACAsignups.net: 

  • A 40-year-old single adult with an annual Income of $17,903, would see their monthly subsidized premium for an average benchmark Silver plan decrease from $52 to $0, for an annual savings of $619.

  • A 40-year-old couple with two children and an annual income of $78,600, would see their monthly subsidized premium for an average benchmark Silver plan decrease from $644 to $393, for an annual savings of $3,010.

  • A 60-year-old married couple with an annual income of $78,390, would be newly eligible for subsidies. Their monthly premium for an average benchmark Silver plan would decrease from $1,920 to $555, for an annual savings of $16,377. 

"Just saying the word ‘savings’ does not do these provisions justice, It’s not just a one-off discount or a coupon. It’s a complete transformation in the way people pay for health insurance.” ~ Jessica Altman, Pennsylvania Insurance Commisioner

Get your maximum health insurance subsidy.

  • 90% of applicants are entitled to additional subsidies

  • Less than 5 minutes to see how much you will save a year.

  • Licensed benefits brokers standing by to assist by phone if you have any questions.

Call Now (877) THE HALO

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