The American Rescue Plan which was signed into law last month, gives ACA agents and brokers a unique opportunity to enroll new and existing clients in more affordable coverage without a qualifying life event. The Department of Health and Human Services has informed consumers will have until Aug. 15 to sign up for plans, extending the deadline from May 15. The special open-enrollment period began on Feb. 15 to help people who had lost jobs because of the pandemic gain health insurance coverage.
Here’s how the American Rescue Plan will impact your ACA enrollments:
1. Your clients receiving unemployment compensation are eligible for a silver plan with a $0 premium and significant cost-sharing reductions.
2. Expanded Advance Premium Tax Credit (APTC) eligibility to those above 400% FPL, which makes ACA coverage more affordable for your clients who traditionally had too high of an income to qualify.
3. Your clients who are within 100-150% federal poverty level (FPL) qualify for a $0 premium silver plan with cost-sharing options that lower deductibles.
4. Subsidies are retroactive to January 1st, 2021. Changes on the Federal Marketplace will take some time to be implemented.
Overall, the difference in premium prices is significant, The Congressional Budget Office estimates that a 64-year-old earning $58,000 would see monthly payments decline from $1,075 under current law to $412 with the new subsidies. (https://www.nytimes.com/2021/02/27/upshot/biden-health-plan-obamacare.html). This is great information to pass on to your clients and capitalize on the benefits of the American Rescue Plan.
Read more about the American Rescue Plan details here or contact a Claro Account Executive to help you create a game plan.