Back in March 2021, President Biden signed the American Rescue Plan (ARP) into law.
The law provides billions of federal dollars to reduce premiums for people who buy their coverage through Covered California.
The aid expands a federal tax credit that you can take upfront as a discount on your monthly premium.
Or you can claim when you file your tax return for 2021 in the following year.
Remember that it is not available for those who buy health insurance outside Covered California.
So, if you have an off-exchange health plan, you can save a lot of money by switching to Covered California.
If you are already enrolled in Covered California, you might have already seen a lower bill starting with your May premium.
Unemployment Benefits in 2021
Later this year, you may be able to get another increase in premium tax credits.
Covered California will have more information available in the summer once these additional savings are available to those who got unemployment compensation during 2021.
At that time, you can check back with your Covered California agent and update your application and current plan with more tax credits to lower your premiums for the rest of the year.
Free COBRA Coverage in 2021
If you are eligible for COBRA because of a reduction in the hours you work or you involuntarily lost your job, you may qualify for help paying for your COBRA premiums from April 1, 2021 through September 30, 2021 under the American Rescue Plan.
Generally, premium assistance means that you will have a $0 monthly premium.
If you qualify, you should get a written notice of your eligibility for COBRA premium assistance from your former employer.
If you did not get a letter and think you may qualify, check with your former employer.
Effective For 2021 and 2022
The ARP premium subsidy enhancements are effective during 2021 and 2022.
These changes to marketplace premium subsidies are temporary, in effect only during 2021 and 2022.
Current enrollees might have already seen a reduction in premium starting in May 2021.
This change is retroactive to the beginning of 2021. You can also claim as a tax refund when you file your 2021 tax return next year.
Need Help with Covered California?
Under the current special COVID enrollment period, you can still sign up for coverage or change plans to take advantage of the additional help.
Our Covered California team can assist you with evaluating your enhanced tax credits and researching the best insurance plan for you and your family.
Call today for a free consultation at (714) 888-5116