Starting April 1, you may be able to get more savings and lower costs on Marketplace health insurance coverage due to the American Rescue Plan (ARP) Act of 2021. Under the new law:

  • There are no longer income limits on receiving tax credits!

  • More people than ever before will be eligible for help paying for health coverage (even those who weren’t eligible in the past)

  • Most people currently enrolled in a Marketplace plan may qualify for more tax credits

  • Health insurance premiums will be lowered after these new savings

What does it mean?

Many people who buy health insurance directly through the Marketplace will become eligible to receive increased tax credits to reduce their premiums. Starting April 1, 2021, consumers enrolling in Marketplace coverage will be able to take advantage of these increased savings and lower costs.

FAQs

If I’m currently enrolled in a Marketplace plan, how do I receive the additional tax credits/lower premiums?

Current enrollees (including those who enrolled during the current 2021 SEP) can update their applications and enrollments in order to get new eligibility results starting April 1. You will need to reselect your current plan in order for the changes to take effect to reduce your premiums for the remainder of 2021. You can also change to a new plan until August 15.

Will savings be automatically updated for current enrollees?

Beginning on April 1, you must come back to update your application in order for the increased tax credit to be applied to your monthly premium.

If I’m currently enrolled through the Marketplace, what happens if I don’t take any action?

Anyone who enrolled in Marketplace plans prior to April 1 has the choice of waiting until they file their taxes next year in 2022 to receive the additional premium tax credit amount when they file and reconcile their 2021 taxes. However, it's recommended that all enrollees come in, update their application, and review their plan options during the 2021 SEP through August 15 because you may be able to choose a plan with lower out of pocket costs for the same price or less than what you are currently paying.

If I am already paying a very low premium, or no premium, should I take any action?

Current enrollees who are already paying low or no premiums may find plans with more generous cost-sharing and lower out of pocket costs, and benefit from changing plans. This means you may be able to find plans with lower out of pocket expenses and lower deductibles for a similar premium to what you’re currently paying.

If I’m receiving unemployment compensation, should I wait to apply?

After April 1, you can come back in to update your application and confirm your current plan with the updated tax credits. Later this year, you may be able to receive another increase in the premium tax credits available to you. More information will become available in the summer once these additional savings are available for consumers who have received unemployment compensation during 2021. At that time, you can return to update your application and current plan with more tax credits to reduce your premiums for the rest of the year.

If I live in a state that operates its own Marketplace, what should I do?

Visit your State Marketplace website for more information about when these additional savings will be available through your Marketplace.

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