American Rescue Plan Act brings Individual market changes

The American Rescue Plan Act of 2021 (ARPA), signed into law by President Biden on March 11, 2021, makes health care coverage more accessible and more affordable to individuals and their families. Increased savings and lower premiums due to additional financial assistance will be available to current enrollees and eligible consumers who enroll in health care coverage certified by the Individual Marketplace. The Exchanges may begin displaying the lower premiums as early as April 1, 2021.

The ARPA increases eligibility guidelines and eliminates the income eligibility ceiling for premium tax credits for 2021 and 2022. This means more Americans now qualify for financial help with Individual health care coverage.

The Centers for Medicare & Medicaid Services (CMS) projects that premiums for individuals enrolled in coverage through the Individual Marketplace will drop by $50 per person per month or $85 per policy per month. CMS also projects that four out of five enrollees will be able to find a plan for $10 or less per month after premium tax credits, and more than half of enrollees will be able to find a Silver plan for $10 or less. The U.S. Department of Health and Human Services (HHS) has created a fact sheet with more details.

We’ll share details as we learn more about the impact to existing insureds and how they can apply for any additional subsidies.  Also watch for news about premium tax credits for individuals who were unemployed for at least one week during 2021.