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The American Rescue Plan Act has made significant changes in the health insurance plans on the individual marketplace. If you have an individual health insurance plan, reach out to one of our agents for a free, personalized review of how your plan has changed.
$0 Silver Monthly Premiums
Income earners who fall below 150% of the federal poverty line now qualify for $0 premium silver plans. These zero-premium silver plans would also come with cost-sharing reductions that lower deductibles substantially. Enrollees with incomes between 100-150% of the poverty line would become eligible for a zero premium silver plan with an average deductible of $177. This means that there are significant savings for health insurance plans that have very low out of pocket expenses for members.
With the American Rescue Plan Act, the government has increased spending for health insurance subsidies by 29%. This means that there will be substantial savings for those who already qualify for health insurance savings. In addition, many people who didn’t qualify before will qualify now.
If your income was too high to qualify for subsidies, you might be able to qualify now. Prior to the American Rescue Plan Act, if your income was above a certain income, you would not qualify for any government subsidies. With the new legislation, silver plans are available for any level of income at a maximum of 8.5% of gross income. If someone elects for a higher deductible bronze plan, then they now qualify for even less expensive monthly premiums.
While removing the subsidy cliff would provide some of the largest drops in premium payments, the additional subsidies to those already eligible are also substantial. Particularly, this is because it guarantees zero-premium silver plans to millions of low-income enrollees. At least 3.4 million of the lowest income enrollees would see a 100% decrease in their premium contribution.
The American Rescue Plan Act – Conclusion
If you have any questions about the American Rescue Plan, please reach out to one of our advisors, and we can review your plan or see if you now qualify for savings.