The American Rescue Plan Signed into Law

The American Rescue Plan was signed into law by President Biden on March 11, 2021. The new law increases premium assistance available through exchanges and removes the “cliff” that makes people ineligible for subsidies if their income exceeds 400% of the Federal Poverty Level for 2021 and 2022. Covered California is working hard to implement these benefits quickly.

New Benefits

• Consumers at any income level may be eligible for more financial assistance because the consumer’s required contribution was lowered across the board.
• Consumers who enroll in Covered California health plans will not have to pay more than 8.5% of their household income.
• Consumers who earn more than 400% of the Federal Poverty Level may be eligible for federal financial help for the first time.
• Consumers receiving unemployment compensation during 2021 may be eligible for the maximum amount of subsidies if enrolled in Covered California plans.
  
• Currently-uninsured consumers will see more financial help and lower premiums, with many qualifying for $1-dollar health plans—including some Silver plans.
• Consumers currently insured off-exchange (directly through an insurer) may be able to save hundreds or even thousands of dollars by switching to the same or similar coverage through Covered California.
• Most current on-exchange members will be automatically redetermined to maximize their savings. Members who don’t receive subsidies today,  get a head start by making sure their applications are up to date with current income.