Insurance is a touchy subject for a lot of people. If you’re one of the many Americans who are currently either uninsured or paying for insurance out of pocket, the American Rescue Plan (ARP) that was signed to help the country fully recover from the great COVID-19 pandemic could greatly improve your access to affordable health care. Today we’re going to be looking at ways your health insurance could be positively affected.
You’re enrolled in an off-exchange ACA-compliant plan
Off-exchange plans are more often than not the exact same as on-exchange plans. The main difference is that off-exchange plans are bought directly from insurers, not through the federal marketplace. Thanks to the American Rescue Plan, individuals earning up to 400% of the poverty level may now qualify for subsidies. Depending on your age and location, you could receive significant savings, making on-exchange plans worth a closer look.
You’re enrolled in a Bronze plan through the exchange
You may have picked this plan because of the price of the premiums as opposed to the Silver, Gold, or Platinum. After the subsidy you were eligible for was applied, your Bronze plan may have been completely free. With ARP, you’ll still have a low (or free) premium, and you may want to consider the other options available. The Silver plan may be available for a significantly lower premium, or it may even be free. The Silver plan has a number of better options than the Bronze, and if you’re eligible for a cost-sharing reduction, it may even be a better idea to upgrade.
If you’re interested in the Bronze plan because of the Health Savings Account (HSA) and the High Deductible Health Plan (HDHP) that comes with it, it’s worth checking out other metal levels. There are often Silver and Gold level HDHPs in many areas.
You’re enrolled in the marketplace and are happy with your plan
Many marketplace enrollees pay full price because they earn over 400% of the federal poverty level and lack subsidies. However, the American Rescue Plan expanded subsidy eligibility, even for higher-income individuals. If you’re satisfied with your current plan and qualify for a subsidy, you can claim it on your 2022 taxes. Alternatively, log into your marketplace account and apply the subsidy now to reduce monthly payments throughout the year.
These are just a few of the ways that you can bet your healthcare costs are going to change because of the ARP bill.