VIDEO: American Rescue Plan and Healthcare... President Biden Stimulus Explained (11:29)
The American Rescue Plan was Signed into Law by President Biden on March 11, 2021.
The Law Has Specific Sections on Healthcare and Health Insurance:
ACA / Obamacare Health Insurance for 2021-2022
1) Premium Tax Credits Will Be Increased so that the Maximum Premium Will Be Reduced from 9.83% to 8.5% of a Household's Income.
2) The 'Subsidy Cliff' Will Be Eliminated So That Households Making More Than 400% of the Federal Poverty Level Will Now Qualify for Subsidies.
3) To Obtain the New Subsidies, People Must Enroll or Re-Enroll Between April 1 and May 15, 2021
Unemployment 'Special Rule'
1) People Who Have Received Unemployment Benefits in 2021 Will Qualify to Have their Obamacare Health Insurance Premiums Paid For at 100%.
2) However, the Existing ACA 'Family Glitch' Still Applies. I.e. If another Member of the Household is Eligible for Employer-Sponsored Health Insurance (e.g. a spouse who is still employed), then the Household is NOT Eligible for Any Premium Tax Credit Subsidy.
1) 100% of the COBRA Premiums Will Be Paid for by the Federal Government for April 1st - Sept. 30, 2021.
2) COBRA Plan Members Have Historically Had Higher Medical Risk Because of the Adverse Selection in Signing Up for COBRA. The American Rescue Plan May Have a Mixed Impact on This Risk.