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The New and Expanded Financial Help
American Rescue Plan
The American Rescue Plan provides new financial assistance to help millions of people get economic relief and health insurance coverage, through Covered California and other marketplaces nationwide.
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Covered California will open a new special-enrollment period on April 12, for May 1, coverage for the estimated 1.2 million uninsured Californians who are eligible as well as the 430,000 people currently insured off-exchange who will qualify for the new financial help.
In addition, most of Covered California’s currently enrolled consumers will see an average of $119 per household in monthly premium savings that will automatically start in May.
Who Benefits From the American Rescue Plan
The American Rescue Plan lowers health care premium costs for people who get coverage through Covered California, or through other Affordable Care Act marketplaces across the nation, by providing new and expanded subsidies to make health insurance more affordable than ever before.
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Covering the uninsured - An estimated 1.2 million Californians, are uninsured and eligible for marketplace coverage under the Affordable Care Act with even lower costs because of the American Rescue Plan.
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Under the American Rescue Plan, these uninsured can get coverage that is more affordable than ever before. In California, consumers who earn less than $32,000 a year for an individual, will be able to either get a benchmark Silver plan for between $50 and $60 a month and virtually all would be able to get a Bronze plan for a $1 a month.
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People who are insured directly through a health insurance company – An estimated 430,000 Californians, are insured directly through a health insurance company and not now getting subsidies. The new law ensures that everyone eligible will pay no more than 8.5 percent of their income on their health premiums.
An individual with an income of more than $51,000 per year currently pays an average of $1,100 a month for their coverage. Under the new and expanded subsidies provided by the American Rescue Plan, their monthly premium drops to an average of $507 – a savings of nearly $600 per month and a total of nearly $12,000 between this May and the end of 2022.
Landscape of the 25 Million Americans Eligible for New Assistance*
How much financial help will I get?
Most people who enroll with Covered California will save money on their monthly payments due to new federal money being available. In addition, because the American Rescue Plan raised income limits and caps what most consumers will have to pay at 8.5 percent of their household income, people who are already enrolled in a plan through Covered California will save an additional $119 a month on average. That’s $1,428 a year in savings. Don’t wait to enroll. The faster you enroll, the more you could save.
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I’m already enrolled through Covered California. Do I need to do anything to get the new money?
Some do and some don’t. You don’t need to do anything if you are currently enrolled through Covered California and already get help paying for your plan. If you are enrolled through us but have opted out of getting financial assistance, you need to take action to get the new help that may be available to you. Call us today at (800) 650-0922 to receive assistance enrolling into financial assistance.
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What if I purchased a plan from a health insurance company directly, not through Covered California?
The new money is only available through Covered California. You could save hundreds of dollars per month if you switch to a plan through us. If you are enrolled with an insurance company that offers coverage through Covered California, you can stay with that same company and even select a plan that is identical to the one you have now. And, the money you’ve already spent on your deductible could be carried over to your new plan.
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I’ve been enrolled in Covered California since earlier this year. How do I get this new money?
We’ll calculate the new money you can get for previous months of coverage and use it to reduce your future monthly bills. You don’t need to ask for a refund from your health insurance company or wait until tax time to see your savings. In addition, if you didn’t receive the maximum amount of new money allowed during 2021, you could be eligible for a credit or refund when you file your 2021 federal income tax return. It’s important to know what counts as income so you don’t have to repay any financial help received.
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What if someone in my household gets unemployment benefits?
If the primary tax filer or their spouse has qualified for or received Unemployment Insurance benefits for at least one week in 2021, the household will automatically qualify for an Enhanced Silver plan that provides additional help with copays and deductibles, all for a monthly premium as low as $1 per each enrollee.
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What if I have health insurance through COBRA?
The American Rescue Plan pays 100 percent of COBRA coverage for eligible individuals from April 1, 2021, through Sept. 30, 2021. This is only for employees who are currently eligible for COBRA (those who have experienced an involuntary termination or reduction of hours in the last 18 months). You remain eligible even if you didn’t elect to get COBRA coverage or discontinued COBRA at an earlier point. Covered California encourages you to begin shopping now to prevent any gap in coverage. Call us today at (800) 650-0922 for assistance.
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