The American Rescue Plan is a $1.9 trillion COVID-19 relief package signed into law last month. The new relief bills give you the opportunity to enroll in more affordable coverage without a qualifying life event. The Department of Health and Human Services has informed consumers that they will have until Aug. 15 to sign up for plans, extending the deadline from May 15. Here are some ways the American Rescue Plan is helping families save money on healthcare costs:
• Increased tax credits that lower what you pay for health insurance through the exchanges created by the Affordable Care Act (ACA).
• 100% subsidized COBRA health insurance coverage through September for those who have lost their jobs.
• Higher child tax credits — $3,600 for children under age 6 and $3,000 for children age 6 and older.
• $1,400 direct payments to millions of Americans.
• Many consumers will be eligible for higher tax credit amounts to help cover their Marketplace health plan premiums.
• Americans with incomes below 150% of the poverty line — $19,320 per year for an individual or $39,750 for a family of four — now qualify for higher subsidies. Because of the lower monthly premiums by $50 per person and $85 per policy.
• 80% of enrollees will be able to get a plan for $10 or less per month after tax credits. About half will be able to enroll in a silver plan for $10 or less per month.
• Under American Rescue Plan, you’ll have the option of a 100% subsidized plan on the exchange.
Keep in mind, if you don’t take action, you’ll still receive the additional benefit as part of your premium tax credit when filing your federal income tax return next year. Beginning on April 1, you must update your application on HealthCare.gov to receive these increased tax credits this year.