Important update on the recently passed American Rescue Plan for members who may be impacted. Passed on March 11, the American Rescue Plan includes provisions that reduce how much members pay for their health insurance coverage in the Marketplace.
Previously the amount of money an individual or family was expected to contribute to their health insurance premiums was capped at 9.83% of the household income. Under the new law, that percentage decreases to 8.5%. All income caps have been removed until 2023.
On April 01, 2021
On-exchange Members have two options.
1.) Call us and let us know that you want to update Information between April 1- May 15, 2021.
• On-exchange members are able re-run or to have their agent re-run your eligibility report to receive the additional tax credits or subsidies. If you are a client, we want to help to make sure everything is done correctly.
• You can select the same plan you are currently enrolled in or can choose a new plan.
• What you have spent towards your deductible and out-of-pocket costs will transfer if they stay on the same plan but might not if you move your plan.
2.) It is okay if you do nothing. If you choose not to update your information but are eligible for additional tax credits or subsidies, they will be reconciled at tax time in 2022.
• You may be eligible to receive a refund if you overpaid.
In either instance, any additional tax credits from January 1- to April 1 will be retroactively applied and reconciled for you when you file your taxes in 2022.
Off-exchange individuals may also want to see if you are newly eligible for tax credits or subsidies beginning April 1.
Off-exchange individuals will need to schedule a phone conference or come in for an appointment to check their eligibility. If you are eligible for a tax credit or subsidy and enroll in a new plan, we will help you cancel/term your existing off-exchange plan.
For additional information, please review this CMS fact sheet. We will share any updates as we receive them.
Please feel free to call or email us with questions (920) 544-0058.
Diane Casey and Jonathan.
Woodhead Insurance Services LLC