There have been recently some significant changes to tax credit amounts and eligibility for insurance premiums. You may be eligible to get more savings and lower costs on Marketplace Health Insurance due to the American Rescue Plan Act of 2021. Under the new law:
- More people than ever now qualify for help paying for health coverage, even those who weren’t eligible in the past.
- Most people currently enrolled in a Marketplace plan may qualify for more tax credits.
- Health insurance premiums after these new savings will go down.
How to find out if you qualify for Marketplace savings
When you apply for Marketplace coverage, you’ll find out if you qualify for a Premium Tax Credit that lowers your monthly premium.
The amount of your premium tax credit depends on your estimated household income for 2021 that you put on your Marketplace application.
Find out if your estimated 2021 income is in the range to qualify for a premium tax credit here.
Enroll or change plans if you qualify for a Special Enrollment Period
You can enroll in or change to a different plan for the rest of 2021 if you qualify for a Special Enrollment Period due to a life event like changing jobs, moving, getting married, or having a baby. You usually have 60 days from the life event to enroll in a new plan.
You can also wait until you file and “reconcile” your 2021 taxes next year (in 2022) to get the additional premium tax credit amount. We recommend you update your application and review your plan options. You may be able to choose a plan with lower out-of-pocket costs for the same price or less than what you’re currently paying.
Note: If you didn’t update your application by early August, then savings were likely automatically saved for you starting September 1st, 2021. They were not able to do this for everyone so the only way to be sure you get these savings is to log in and update your application yourself or contact your broker.
Changing Plans – The Deductible May Reset
If you qualify to change plans, it’s important to consider the new plan’s deductible – it will likely start over. If you change plans or add a new household member, any out-of-pocket costs you already paid on your current 2021 Marketplace plan probably won’t count towards your new deductible, even if you stay with the same insurance company.
Call your insurance company before changing plans or adding a new household member to find out if you’ll need to start over to meet your new plan’s deductible. If you have already paid a lot in out-of-pocket costs toward your deductible, check with your insurance company to see how it might impact you and what options are available to keep credit toward what you’ve already paid.
If You Get Unemployment Compensation
Starting July 1, 2021 you be eligible for more savings and lower costs of 2021 Marketplace coverage if you get or were approved to get unemployment compensation in 2021 – even if you didn’t qualify in the past because your income was low and your state hasn’t expanded Medicaid. You may also be able to enroll now if you submit an application for Marketplace coverage, even if you didn’t experience another life event. (The Marketplace will follow up with you shortly after you submit your application if you’re eligible for the Special Enrollment Period).
If you or your spouse got unemployment income for at least one week in 2021, your whole household may be eligible for a tax credit that covers the entire monthly premium for the second-lowest-cost Silver Plan (SLCSP) that’s available in your area, regardless of your household’s income. If anyone in your household (including a dependent) for unemployment compensation in 2021, you may qualify for new cost-sharing reductions to lower your household’s out-of-pocket costs if you enroll in a Marketplace plan in the Silver category.
If you have a Marketplace plan but haven’t updated your application since June 30, 2021, you should update your application. Re-select your current plan to save more on your monthly premium and out-of-pocket costs through increased tax credits and cost-sharing reductions.
NOTE: if you didn’t update your application by early August, the Marketplace tried to apply your tax credit for you, starting September 1, 2021. But, they weren’t able to do this for everyone and couldnt increase your cost-sharing reductions. The only way to get all the savings you qualify for is to log in and update the application yourself.
COBRA Premium Assistance
If you qualify for COBRA continuation coverage because you or a household member had a reduction in work hours or involuntarily lost a job, you may qualify for help paying for your COBRA. If you qualify you should get a written notice from your former employer or insurance company.