American Recovery Act Revises ACA Subsidies

April 07, 2021

Image courtesy of digitalart at

One of the updates in the American Rescue Plan changes the Affordable Care Act or Obama Care by expanding the financial assistance or subsidy to more individuals and families that will reduce the cost of their monthly plan premium.

The changes came out Thursday, April 1st.  I encourage current members to log into the Health Marketplace to update their information or if it has not changed, resubmit their application. This triggers a new subsidy check. Once the member knows the results, they can either stay with the plan they have or switch to a new plan.

Other people who can benefit from ACA or Obama Care changes include those who became unemployed this year.  All they need to do is confirm they are unable to obtain health coverage through an employer or through a family member as part of the application process for a Marketplace plan. By doing this their premium cost will be very low or zero for their chosen plan.  

Also, if someone has Cobra through a former employer and the person is eligible, it’s possible they can get help to cover their Cobra premium either partially or in full.

Do note before making this decision call an insurance agent like myself or your insurer to find out if you will have to start over with the plan deductible and maximum out of pocket costs or if these carry over when switching to anther plan with the same company. Members who leave their current insurer to go to another insurer will start over with these costs.

As I stated previously the new premium rates came out Thursday, April 1, 2021.  However, the premium adjustment for qualifying current members will not begin until the following month.   The last day to take advantage of this Special Enrollment Period is August 15, 2021.