On April 1, U.S. Department of Health and Human Services (HHS) Secretary Xavier Becerra announced additional savings and lower health care costs are available for consumers on HealthCare.gov.
The American Rescue Plan (ARP) has increased tax credits available to consumers, helping to reduce premiums and giving consumers access to more affordable health care coverage. It also has lifted the ceiling on income limits, so families previously earning too much to be eligible for Premium Tax Credits (PTC), may now be eligible.
The ARP Act has also “forgiven” the repayment of 2020 PTC’s as a result of changing incomes due to the Pandemic. If you have already filed your taxes, it is not recommended to file an amended tax return. Visit ww.irs.gov for more information.
Premium tax credit calculations for the Marketplaces on HealthCare.gov are now adjusted so that most consumers qualify for more substantial advance payments of premium tax credits. Many Americans on the Marketplaces will see their premiums decrease, on average, by $50 per person per month and $85 per policy per month.
An average of four out of five consumers currently enrolled in a plan through HealthCare.gov will be able to find a plan for $10 or less per month with the newly expanded financial assistance under the American Rescue Plan.
Additionally, after advance payments of the premium tax credits, an average of three out of five uninsured adults eligible for coverage on HealthCare.gov may be able to access a zero-premium plan and nearly three out of four may find a plan for $50 or less per month on HealthCare.gov.
Current enrollees should review their application, make any changes needed to their current information, submit their application and select a plan, or reselect their current plan, to receive the increased advance payments of premium tax credits for 2021 Marketplace coverage.
Consumers who take action in April and confirm updated savings on the plan of their choice will start receiving the savings and lower costs starting with their May 1 premiums.
For free and confidential local assistance, contact your local Assister Kim Winchell at 406-873-5670.