The American Rescue Plan is a new law to address the COVID-19 public health and economic crisis. It dramatically reduces premiums for people through additional premium tax credits (PTCs), expands eligibility for PTCs to higher-income people, and gives many people receiving unemployment benefits access to plans with $0 premiums. These changes…
How does the American Rescue Plan affect premiums?
The American Rescue Plan (ARP), COVID-19 relief legislation signed into law in March 2021, lowered marketplace premiums in 2021 and 2022 by increasing the financial help (advance premium tax credit, APTC) people can receive. People with income at or below 150% of the federal poverty line (FPL) who are otherwise eligible for APTC can enroll in a Silver plan with a zero-dollar premium.
The law also made financial help more widely available by allowing people with incomes over 400% FPL, who were previously ineligible for financial help, to receive a premium tax credit in 2021 and 2022.
It also provided additional financial help to people who received unemployment benefits in 2021.
In August 2022, Congress enacted the Inflation Reduction Act, which extends these enhanced marketplace subsidies and expanded eligibility for premium tax credits for an additional three years, through the end of the 2025 coverage year. As a result, the low-income special enrollment period for people with income at or below 150% FPL remains in place in states that use HealthCare.gov.
In this Beyond the Basics webinar presented by the Center on Budget and Policy Priorities on September 16, 2021, Tara Straw, Director of Health Insurance and Marketplace Policy, provides an in-depth review of eligibility rules for premium tax credits—including how offers of employer-sponsored insurance can affect eligibility—as well as how…