President Biden just signed the American Rescue Plan (ARP) into law in March 2021.

Under the new law, Covered California expands premium subsidies for many Californians.

You can still sign up for affordable health insurance as part of Covered California’s special enrollment.

According to Covered California, the passage of the American Rescue Plan has put about $3 billion in federal subsidies.

About 2.5 million Californians could see lower premiums starting in May 2021, and some plans will cost as low as $1 per month.

High Income Individuals and Families

There are about 8 million people who are either buying unsubsidized plans or paying full-price for their plans.

This includes an estimated 3.4 million uninsured people who fell into the subsidy cliff.  This means their household income was too high to qualify for any subsidies.

Additionally, it includes about 3.3 million people buying off-exchange coverage and 1.4 million people buying unsubsidized Covered California plans.

By extending eligibility for subsidies above 400% of the federal poverty level (FPL), the new law lowers premiums for virtually everyone.  We expect older people with income above 400% of FPL ($104,800 for a family of 4) would receive substantial new subsidies.  The benefit would gradually phase out as benchmark silver premiums no longer cross the 8.5% of income threshold.

Unemployment Benefit

If you are unemployed, you may be able to get an affordable health insurance plan through Covered California.

Or you may also qualify for free or low-cost coverage through Medi-Cal.

Your household size and income determine what health coverage you are eligible for and how much financial assistance you will get.

Under the new law, anyone who has received unemployment benefits in 2021 could receive coverage for as low as $1 a month no matter that person’s actual total income in 2021.

Effective For 2021 and 2022

The premium subsidy enhancements are effective for 2021 and 2022.

In April, Covered California will automatically determine eligibility for most enrolled consumers.

Subsidies for current enrollees are retroactive to the beginning of 2021. Also, you can claim them as tax refunds when you file your 2021 tax return in 2022.

Looking for a Covered California broker?

Buying health insurance can be confusing.  You are buying coverage that can save your life in the case of an emergency. 

If you are thinking of buying health insurance through Covered California, you might want to consider working with a Covered California broker.  Brokers represent an extensive network of carriers, insurance plans and local knowledge.  They are also certified with Covered California and licensed with the state’s department of insurance

Shop smart with your local Covered California broker

Skyline Benefit is a local Covered California broker in Orange County with extensive experience and knowledge about Covered California insurance carriers, plans and coverages. 

Call us today and get a free consultation and quote. (714) 888-5116