You may be able to get more savings and lower costs on Marketplace health insurance coverage due to the American Rescue Plan Act of 2021. Under the new law:
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 the estimated household income for 2021 that you put on your Marketplace application.
You have through August 15 to enroll in or change your Health Insurance Marketplace® plan due to the coronavirus disease 2019 (COVID-19) emergency.
If you have Marketplace coverage, including if you recently enrolled through the 2021 Special Enrollment Period:
You can also wait until you file and “reconcile” your 2021 taxes next year (in 2022) to get the additional premium tax credit amount. But, we recommend you update your application and review your plan options during the 2021 Special Enrollment Period through August 15. 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.
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You can change Marketplace health coverage during the 2021 Special Enrollment Period through August 15.
But, it’s important to consider the new plan’s deductible — it’ll 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.
Visit your State Marketplace website or contact their Call Center for more information about when these additional savings will be available through your Marketplace.
Not sure which website your state uses? Select your state to find out.
Later this year, you may be able to get another increase in premium tax credits. HealthCare.gov 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 come back to HealthCare.gov to update your application and current plan with more tax credits to lower your premiums for the rest of the year.
If you’re 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 (called “premium assistance”) from April 1, 2021 through September 30, 2021 under the American Rescue Plan Act of 2021, based on how long your COBRA coverage can last. Generally, premium assistance means that you’ll 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 didn’t get a letter and think you may qualify, check with your former employer or health insurance company.
Note: You can’t have both a Marketplace plan with premium tax credits and COBRA with premium assistance. If you’re eligible for both, you’ll have to choose.
To learn more about eligibility for COBRA premium assistance, visit the U.S. Department of Labor at DOL.gov.