New COVID Bill (ARPA) will Deliver Huge Health Insurance Savings

Healthedly-Blog

On March 11th, 2021, President Joe Biden signed the American Rescue Plan Act (ARPA) into law. This act is a $1.9 trillion economic stimulus package aimed at providing relief to individuals and businesses affected by the COVID-19 pandemic. One of the key provisions of the ARPA is a significant expansion of health insurance coverage and cost savings for Americans.

Under the ARPA, the government will provide a 100% subsidy for COBRA premiums from April 1st, 2021 to September 30th, 2021.

COBRA is a program that allows individuals who have lost their job-based health insurance to continue their coverage under their former employer’s plan. Prior to the ARPA, COBRA premiums were expensive and often unaffordable for many individuals. Namely, these individuals had lost their job and their health insurance. The ARPA’s 100% subsidy will make COBRA coverage free for eligible individuals during this time period. Thus, this will provide a much-needed lifeline for those who have lost their insurance due to the pandemic.

In addition to the COBRA subsidy, the ARPA also expands the premium tax credits available under the Affordable Care Act (ACA).

These credits help lower the cost of health insurance premiums for individuals and families who purchase insurance on the ACA marketplace. The ARPA increases the amount of the premium tax credits and makes them available to a larger income range, making health insurance more affordable for many Americans.

The ARPA also provides funding for states to establish or expand their Medicaid programs. Medicaid is a government-funded health insurance program for low-income individuals and families. The ARPA’s expansion of Medicaid will provide insurance coverage to more low-income Americans, including those who were previously ineligible due to their income.

Overall, the American Rescue Plan Act of 2021 will deliver huge health insurance savings for Americans.

The COBRA subsidy and expanded premium tax credits will make insurance more affordable for those who have lost their job-based coverage or are struggling to afford insurance on the ACA marketplace. The expansion of Medicaid will provide insurance coverage to more low-income Americans. These provisions will help ensure that more Americans have access to the healthcare they need, especially during the ongoing COVID-19 pandemic.

For more information on affordable healthcare coverage, contact Healthedly today!

 

 

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