How the American Rescue Plan Will Impact Your ACA Health Insurance Plan

President Biden recently signed the American Rescue Plan Act (ARPA) into law, which contains a number of provisions on exchange subsidies, dependent care flexible spending accounts, unemployment and economic stimulus, and PPP loans/aid to businesses.

For those enrolled in Affordable Care Act (ACA) health insurance plans, the law includes provisions that significantly affect subsidies and Advance Premium Tax Credits (APTC), including…

Note: Subsidies are retroactive to January 1, 2021.

Larger subsidies for 100 to 400 percent FPL

Enrollees within 100 to 150 percent FPL are eligible for a $0 premium silver plan with substantial cost sharing reductions that lower deductibles.

Expanded APTC eligibility to those above 400 percent FPL

The new bill caps the percentage of income paid for a Marketplace benchmark silver premium to 8.5 percent, which makes ACA coverage significantly more affordable for enrollees who traditionally had too high of an income to qualify.

APTC guarantees for enrollees receiving unemployment compensation

If an enrollee is receiving unemployment compensation, they will qualify for subsidies as if their income is 133 percent FPL. This means these enrollees are eligible for a silver plan with a $0 premium and significant cost sharing reductions.

We will continue providing more information as it is released. Please contact your ARC representative with any questions you might have.