American Rescue Plan Act (ARPA) Lowers the Cost of Health Insurance for Most Washingtonians
/The American Rescue Plan Act (ARPA) was enacted in March 2021 and includes changes impacting health care affordability, coverage access, and other federal assistance through Washington Healthplanfinder.
Beginning May 6, Washingtonians qualify for more cost assistance to reduce premiums for health plans sold through the Washington Healthplanfinder.
Lower Premiums are Available on Healthplanfinder
Did you know? The law:
Increases the premium tax credits available for 2021-2022 health plans - Most Washington Healthplanfinder customers already save on their insurance and will save an additional average of 45% on premiums beginning in July. Many off-exchange consumers would save up to $525 per month by switching to Washington Healthplanfinder.
Expands premium tax credits to higher earners - Families earning well above $100,000 -who were not previously eligible for federal help now qualify for tax credits worth hundreds of dollars per household per month!
Provides additional help for individuals eligible for Unemployment during 2021 - Anyone who is eligible for unemployment insurance during 2021 will be eligible for the best coverage available for as low as $1 per month - regardless of their actual income for the year. To take advantage of this benefit, current and potential new customers need to make sure to report their unemployment income in Washington Healthplanfinder
Uninsured? The Special Enrollment Period was extended to August 15, 2021. Shop for health insurance plans on Washington Healthplanfinder and see the NEW lower premiums.
Don’t have any clue what all this means for you and your family?
Contact our Navigators and we can help you figure it out!
- Call (509) 340-9008 | Email BHTNavigatorStaff@BetterHealthTogether.org -
Background
Washington Health Benefit Exchange
Washington Healthplanfinder is Washington state’s online marketplace for health and dental coverage for individuals and families. Individuals can also apply for Washington Apple Health (Medicaid) on the site.
Advanced Premium Tax Credits (APTC)
APTCs can be applied to your monthly insurance premiums to help lower the cost of a health plan purchased through Washington Healthplanfinder
The amount of tax credits you are eligible to receive is calculated based on income and household size. Those who have a lower income and larger households will receive a larger tax credit.
Premium tax credit eligibility:
Household income above 133% FPL
Not offered affordable minimum essential coverage (MEC)* from any other source (employer, TRICARE, Veteran’s Administration)
*Affordable MEC is considered 9.83% or less of your gross annual income.
If married, must file taxes jointly
Must agree to file taxes
American Rescue Plan Changes to Advanced Premium Tax Credits (APTCs)
Increases APTC applicable percentages for plan years 2021 & 2022
Caps premium spending at 8.5% of income for all customers earning over 400% FPL
Effective retroactively to January 1, 2021
Lowers the income-limit percentages for calculating APTC eligibility for plan years 2021-2022
Disregards the household income for those who experienced unemployment during 2021 and treats the household as having earned 133% of the Federal Poverty Level
*Individuals eligible for one or more weeks of Unemployment during 2021 are treated as earning 133% of the Federal Poverty Level when calculating premium tax credit eligibility.
Health Coverage Assistance for Workers
COBRA Premium Assistance
From March 1, 2021, through September 30, 2021, individuals will be treated as having paid their full premium (100% premium assistance).
COBRA insurance is provided through your previous employer.
Unemployment Income (UI) & Tax Credits:
Individuals who are approved for or receive UI during any week in 2021 and earn over 133% FPL will have their income treated as 133% FPL for purposes of calculating their APTC eligibility.
Under the increased APTC provisions outlined above, these individuals will be eligible for a 0% applicable percentage. Individuals must attest and document their approval for and receipt of UI and, when married., file a joint tax return.
Who faces remaining affordability barriers?
Individuals in the “family glitch”
Low-income individuals who still cannot afford the cost of their coverage
Individuals who are not eligible for tax credits due to immigration status
As currently drafted, the increased APTC amounts expire after 2022, leaving individuals over 400% FPL with no assistance and those earning under 400% FPL with the same level of assistance they receive today. Congress would need to act to extend the APTC enhancements beyond 2022.
Need Help?
Finding the right coverage and enrolling your family can be challenging. We can help!
Our health insurance Navigators can:
Explain your household’s coverage options and explore available financial assistance.
Provide support to those with unique cultural, linguistic, disability, or other needs.
Connect those in need with local organizations providing health resources and services.
Call (509) 340-9008
Email BHTNavigatorStaff@BetterHealthTogether.org
*Navigator assistance is always free and confidential.