Obamacare’s Latest Changes: Everything You Need to Know

The American Rescue Plan Act of 2021 has recently brought significant changes to the Affordable Care Act (ACA). These changes aim to make health insurance more affordable and accessible for millions of Americans.

Expanded Premium Tax Credits

One of the key changes is the expansion of premium tax credits, which help low- and middle-income individuals and families pay for their health insurance premiums. Under the new law, more people will be eligible for these credits and the amount of the credits has been increased.

For example, under the old law, individuals with income up to 400% of the federal poverty level (FPL) qualified for premium tax credits. The new law extends this eligibility to individuals with income up to 500% of the FPL. Additionally, the amount of the premium tax credits has been increased for all income levels.

Capping Expected Contributions

Another change is the capping of expected contributions, which is the amount of money that individuals and families are expected to pay for their health insurance premiums. Under the old law, there was no limit on expected contributions for people with income over 400% of the FPL. This meant that these individuals could face significant premium costs.

The new law caps expected contributions at 8.5% of income for people with income over 400% of the FPL. This means that these individuals will now have a more affordable monthly premium.

Lower Deductances for Silver Plans

The new law also lowers deductibles for Silver plans, which are the most popular type of ACA plan. Silver plans offer a balance of coverage and affordability, but their deductibles can be high. The new law reduces deductibles for Silver plans by an average of $400 per year.

Expanded Coverage for Undocumented Immigrants

The new law also expands coverage for undocumented immigrants. Under the old law, undocumented immigrants were not eligible for health insurance through the ACA. The new law allows undocumented immigrants to purchase health insurance through the state-based health insurance exchanges.

Increased Funding for Marketplace Navigators

The new law also provides increased funding for Marketplace navigators, which are non-profit organizations that help individuals and families enroll in health insurance through the ACA. These navigators provide free assistance with understanding the ACA and choosing the right health insurance plan.

Conclusion

The American Rescue Plan Act of 2021 has made significant changes to the Affordable Care Act, making health insurance more affordable and accessible for millions of Americans. These changes are expected to reduce the number of uninsured Americans by millions and help to make health care more affordable for everyone.

If you are a licensed agent, you can assist individuals and families with understanding these changes and enrolling in an ACA health insurance plan. Contact us today to learn more about the ACA and how you can help your clients get the coverage they need.