American Rescue Plan- More Financial Help On The Way

The American Rescue Plan Signed into Law

The American Rescue Plan was signed into law by President Biden on March 11, 2021. The new law increases premium assistance available through exchanges and removes the “cliff” that makes people ineligible for subsidies if their income exceeds 400% of the Federal Poverty Level for 2021 and 2022. HealthCare.gov, Covered California, Connect4Colorado, Pennie, and other exchange platforms are working on to implement these changes.

New Benefits

  • Consumers at any income level may be eligible for more financial assistance because the consumer’s required contribution was lowered across the board.
  • Consumers who enroll in on exchange health plans will not have to pay more than 8.5% of their household income.
  • Consumers who earn more than 400% of the Federal Poverty Level may be eligible for federal financial help for the first time.
  • Consumers receiving unemployment compensation during 2021 may be eligible for the maximum amount of subsidies if enrolled in On Exchange Health ACA Plans.

The table of income level and subsidy contribution shown here, would allow you to better understand your eligibility for subsidy. 

Income and Poverty Level

COBRA Coverage: 

The final bill covers 100% of COBRA costs for people who have lost employer-sponsored coverage, starting on April 1, 2021 and ending on September 30, 2021.


A few Important Points:

  • This will only apply to people who were involuntarily terminated.
  • People can’t take the COBRA subsidy if they are now eligible for other coverage (including a new group plan or Medicare )
  • The federal government will have to produce new model notices within 45 days of March 12, 2021, which employers will have to send to people who become eligible for the COBRA subsidy.

What if I underestimated my income in 2020?

People who underestimated their income in 2020 wont have to pay back APTC when they file their axes. This is a one time deal!!

Pregnancy and Medicaid Continuity?

Generally, pregnancy Medicaid continues for 60 days after birth, but now it will extend a full 12 months. Thus will stick around for 7 years!

If you are still not signed up for a health insurance plan, you have until 05/15/2021 to sign up!!

Compare Health Insurance Plans

View all availble Health Insurance Plans On and Off Exchange for Free. Check for subsidy eligibiliy and apply for coverage.

For Information on COVID-19


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