The American Rescue Plan and What It Means for You
March 30, 2021
The New Law
President Biden signed the American Rescue Plan Act of 2021 (ARP) into law on March 11, 2021. ARP makes major improvements in access to and affordability of health coverage through the Marketplace by increasing eligibility for financial assistance to help pay for Marketplace coverage.
The new law will lower premiums for most people who currently have a Marketplace health plan and expand access to financial assistance for consumers new to the Marketplace.
Under the new law, many people who buy their insurance through the Marketplace will become eligible to receive increased tax credits to reduce their premiums.
Starting April 1, 2021, consumers enrolling in Marketplace coverage will be able to take advantage of these increased savings and lower costs.
Lower costs and expanding access
Under the American Rescue Plan:
- Individuals and families may be eligible for a temporary increase in premium tax credits for this year, with no one paying more than 8.5% of their household income towards the cost of the benchmark plan or a less expensive plan. Meaning, many consumers will be eligible for higher tax credit amounts to help cover their Marketplace health plan premiums.
- Individuals and families get a temporary boost in their premium tax credits.
- Most people across all household income levels will see lower premiums as a result of receiving more tax credits to reduce plan prices. Many consumers with household incomes from 100% to 150% FPL would have $0 premium plans (after tax credits) available to choose from when considering their options and selecting a plan.
- Taxpayers who receive unemployment compensation during any week beginning in 2021 may be eligible to receive premium tax credits to help pay for 2021 Marketplace coverage.
Background on how premium tax credits work
For consumers who are eligible for premium tax credits to help purchase a Marketplace plan, an individual or a family’s tax credit amount is calculated based on the following factors:
- Household’s total expected income for the year
- Total number of people in the household that file taxes together
- The premium amount of the second-lowest cost Silver plan in the consumer’s area in the Marketplace. This is the “benchmark” plan cost used to calculate premium tax credits. It’s not related to which plan a consumer actually chooses to enroll in.
- The tax credit calculation uses a percentage of the household’s income that they need to contribute (spend) on monthly health insurance premiums. This amount is limited based on how their household income compares to federal poverty levels (FPL).
- After the coverage year, consumers who had a Marketplace plan with premium tax credits during the year will need to file their federal income tax return for that year and reconcile the amount of tax credits they received in advance with the final premium tax credit calculation as a part of their tax return. If their house income turns out to be higher than what they estimated on their Marketplace application, the household may need to pay back some or all of the excess premium tax credit they received in advance as a part of filing their tax return. Depending on the circumstances the amount owed back may be capped.
Now is the Time to Take Action
- We are scheduling appointments NOW to update your Marketplace application or to enroll new consumers in a Marketplace plan.
- If you have an existing plan, you MUST have an updated application in order to receive the ADVANCED premium tax credit.
The only thing you need to do is make a quick call to our office, and let us handle the rest.
Call 706-257-5073 today!
Reference: Centers for Medicare and Medicaid Services
Vision care often falls to the bottom of the priority list, especially for individuals without noticeable changes in their eyesight. However, routine eye exams are a key part of preventive healthcare—and their benefits extend well beyond correcting vision. Regular visits to an optometrist or ophthalmologist can help detect broader health issues, protect against vision loss, and contribute to your overall well-being. What Happens During a Comprehensive Eye Exam? A routine eye exam is more than just reading an eye chart. It typically includes: Visual acuity testing (how well you see at various distances) Eye muscle and alignment tests A refraction assessment to determine prescription needs Examination of the retina and optic nerve (often using dilation) Screening for eye conditions such as glaucoma, macular degeneration, or cataracts Depending on your health history, your provider may also check for signs of systemic conditions like diabetes or high blood pressure. Why Eye Exams Matter—Even with Good Vision Many eye diseases develop slowly and without symptoms. By the time vision changes occur, damage may already be significant. A comprehensive eye exam can reveal early warning signs of: Diabetic retinopathy Hypertension Glaucoma High cholesterol Neurological concerns such as increased intracranial pressure or stroke risk In some cases, an eye exam may be the first indication of an undiagnosed medical issue. How Often Should You Have an Exam? The American Optometric Association offers the following general guidance: Adults aged 18–60: Every one to two years Adults aged 61 and older: Annually Children: First eye exam at 6–12 months, then periodically as recommended Individuals with health risks (e.g., diabetes, a family history of eye disease): More frequent exams may be required Vision Insurance vs. Medical Insurance It’s important to understand that vision insurance typically covers routine eye exams and benefits for lenses, frames, or contacts. Medical insurance, on the other hand, may cover eye care only when related to a medical condition or emergency. Protecting Your Eye Health Whether you need corrective lenses or not, annual eye exams help safeguard your vision and overall health. Consider scheduling a routine exam this year—and encourage others in your family to do the same.
For young adults, aging off a parent’s health insurance plan can be a challenging transition. This life event usually happens when you turn 26, which is the age when you can no longer be covered under your parents’ plan, according to the Affordable Care Act (ACA). However, this shift doesn’t have to be a stressful one if you’re prepared and informed about your options. When Do You Age Off Your Parent’s Health Insurance? Under the ACA, young adults can remain on their parent’s health insurance plan until the age of 26. Once you reach this age, you will need to secure your own health insurance coverage. The exact date you age off your parent’s plan depends on your birthday and your parent's insurance renewal period. For many, this happens on their birthday or at the end of the month in which they turn 26. What Are Your Options After Aging Off? Once you age off your parent’s health plan, you’ll need to find new coverage. Here are some options: 1. Marketplace Insurance: You may be eligible for a plan through the healthcare marketplace. If you’re under 30, you can also consider a Catastrophic Plan, which provides low premiums but high deductibles for young, healthy individuals. 2. Employer-Sponsored Insurance: If you have a job that offers health benefits, you may be able to enroll in your employer’s plan. Open enrollment periods for employer plans may vary, so it’s important to check when you can apply. Typically, aging off a parent’s plan would create a qualifying event to enroll in the employer coverage. 3. Medicaid: If you’re on a limited income, you may qualify for Medicaid, which offers free or low-cost coverage depending on your state. 4. Parents’ Plan through COBRA: In some cases, you may be able to extend coverage under your parent’s plan via COBRA. However, this can be expensive, as you would need to pay the full premium yourself. What Should You Consider When Choosing a New Plan? • Affordability: Compare the cost of monthly premiums, deductibles, and copays. A plan that seems affordable in terms of premium costs might have high out-of-pocket expenses rendering using the plan when needed unaffordable. • Coverage: Make sure the new plan offers coverage for the services you need, such as prescriptions, preventive care, mental health services, and emergency care. All ACA plans will offer these benefits, but if you are looking at short term or some other type of plan, these basic services may be omitted. • Networks: Check if your preferred doctors and healthcare providers are included in the plan's network. Take Action Start preparing ahead of time. Don’t wait until the last minute to explore your options. If you’re aging off a parent’s plan, consider starting your search for coverage at least 60 days before you lose your existing plan. This will give you plenty of time to review different options and choose the best plan for your needs. We recommend using a qualified agent who represents multiple options to ensure you get the best product and price for your needs.