The American Rescue Plan Act (ARPA) was signed by President Biden on March 11, 2021 to help rebuild the U.S. economy affected by the COVID-19 pandemic and continuing recession.
The American Rescue Plan Act improves affordability of marketplace (Covered California) health care coverage by expanding premium assistance for 2020 and 2021. It increases the Advance Premium Tax Credits (APTC) by limiting the consumer’s required contribution to no more than 8.5% of household income. This is a decrease from the 2020 percentage of 9.78% and what was to have been an increase in 2021 to 9.83%. This means no consumer will pay no more than 8.5% of household income toward the second lowest cost Silver Plan and some Bronze plans may be only $1.
- On Exchange (Covered California): Most will receive an increase in their APTC which will reduce the overall cost of their monthly premium. These increases in credit will be determined during the month of April and should be reflected in their May premiums.**
- Off Exchange: Since there will be a significant increase in the amount of financial help available those consumers who currently do NOT have a plan through Covered California will likely benefit by checking to see if they can receive a credit. The Covered California system that allows for this will be updated as of April 12th, Call us on or after that time and we can check for you!
- A Special Enrollment has been extended until December 31, 2021 to help consumers take advantage of this opportunity and get enrolled into a plan through Covered California.
- April 5, 2021: Any consumer reporting a change in their Covered California account (change in income, etc) will be able to see the increased assistance applied to their net premium, likewise, any NEW consumer submitting an application who is eligible for assistance will see the credit applied to their net premium**
- April 12, 2021: We will be able to calculate the increase in or amount of credit you should be receiving as of May 01, 2021*
- April 15-30, 2021: Covered California will automatically redetermine eligibility for every enrolled Covered California consumer who meets the eligibility requirements.
- Have provided consent for verification (through 12/31/22) AND
- Applied via a subsidized application AND
- Are eligible AND
- Have not terminated or cancelled their enrollment
**Due to the different insurance carriers procedures and billing cycles this change may not be reflected in your May billing statement. Contact your insurance company if you have questions
*Note: this calculation is only an estimate of the credit that you will receive, you will receive more accurate results when completing the Covered California application online.
- Special Enrollment through December 31, 2021
- Current Covered California members most likely will receive an increase in credit on their May 01, 2021 billing statement
- Consumers that have insurance outside of Covered California should check to see if they can now receive a credit on a similar plan through Covered California
- Those who do not have insurance should apply now due to the increased credits available. Plans will be MUCH more affordable.
CONTACT US at 818-253-1736 (p/t/f) or email@example.com
We can help get you over the finish line and applied for Covered California or, if you’re a current Covered California member we can help make sure your account is set to receive your increased assistance as of May 01, 2021!