Will recent changes make marketplace plans more affordable?

Yes.  The American Rescue Plan, enacted on March 11, made marketplace subsidies more generous for people at every income level.   Special subsidy enhancements are available in 2021 to people who receive unemployment benefits.

For example, people earning 150% of the federal poverty level (just over $19,000 for an individual in 2021) were required to contribute $66/month (nearly $800/year) toward the cost of the benchmark silver plan this year.  Now, the premium tax credit will cover the full cost of the benchmark silver plan. 

People with higher incomes – above 400% FPL (or just over $51,000 for an individual in 2021) – were not eligible for help before, but now they qualify for premium tax credits.  The tax credit will limit what they have to contribute to the benchmark silver plan to no more than 8.5% of income.  For example, the national average premium for the benchmark silver marketplace plan for a 60-year old in 2021 is $957 per month.  Before the American Rescue Plan, someone with income of 401% FPL had to pay the entire premium, but now can get tax credits that will reduce what they pay to $362 per month.

HealthCare.gov and state-run marketplaces will soon display new subsidy amounts online.  Meanwhile, you can use this  subsidy calculator to estimate the new premium tax credit amounts that apply to you. 

While we have made every effort to provide accurate information in these FAQs, people should contact the health insurance Marketplace or Medicaid agency in their state for guidance on their specific circumstances.

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