american rescue plan

Enhanced Subsidies Under the American Rescue Plan

The American Rescue Plan builds on the Affordable Care Act (ACA) by providing enhanced premium subsidies for coverage sold through the health insurance marketplaces. 

The American Rescue Plan increases the premium tax credits (PTCs) available for marketplace enrollees by reducing the percentage of income that individuals and families are expected to contribute towards premiums, for plan years 2021 and 2022.

Under the new premium schedule, these subsidies will be available to people enrolled in marketplace plans in 2021 and 2022 at all income levels, including individuals with incomes above 400 percent of the federal poverty level (i.e., $51,040 for an individual or $104,800 for a family of four) who previously did not qualify.

Are you eligible for Enhanced Subsidies under the ACA Enrollment Period? Call me today to find out!

Increased Tax Subsidy Credits

The ACA Special Enrollment Period (SEP) for the federal healthcare exchange has been extended through August 15.

According to the Centers for Medicare and Medicaid Services (CMS), the expansion will enable individuals and families more time to access the increased tax subsidy credits included under the American Rescue Plan stimulus.

Until August 15, new consumers are to enroll as they would during an open enrollment period: 

  1. Complete the application; 
  2. Receive an eligibility determination (which will include the new amount of PTC); 
  3. Select a plan; and, 
  4. Pay the first month’s premium. 

As a current enrollee, how do I receive PTCs?

  • To take advantage of the reductions, current enrollees should submit an application update as soon as possible to receive an updated eligibility determination.
  • Even if all the information on the application remains the same, consumers should update their application to reflect “report a life change,” and then select the option “change to my household’s income.”I can help you with the application process to ensure it goes smoothly.
  • After receiving a new eligibility determination, consumers can continue their current health plan with a new lower premium or choose a new plan.
  • Consumers may instead choose to make a new plan selection but should consider how much they have already paid toward the deductible when deciding whether or not a change in plan makes sense.

Because the cost of health insurance is so high for so many people, most marketplace enrollees opt for advance PTCs to reduce the amount they owe in monthly premiums.

Is the Affordability of Employer-Based Coverage Affected?

According to, employer-based coverage is still considered affordable for an employee, even if the employee and other household members want to enroll in a plan that costs more and/or covers dependents.

Work With a Local Independent Insurance Agent

Contact me today to discuss your eligibility for enhanced subsidies under the ACA enrollment period. I will help you find the right plan that fits your budget and needs.

I am licensed in Georgia, South Carolina, Florida, Pennsylvania, and Alabama.