The Covid-19 stimulus bill or American Rescue Plan (ARP), signed into law in March 2021, contained a very important Affordable Care Act (ACA) expansion, relevant to AIA members.
The ARP bill removes the income cap for federal premium subsidies for 2021 and 2022. This means that everyone is now eligible for a federal premium subsidy when purchasing individual health insurance via a state or federal exchange, regardless of income. The administration announced new subsidies for the 2021 and 2022 calendar years.
Under the new law, the cost of a Silver Plan cannot exceed 8.5% of your household income. For example, a family of four with a household income of $150,000 would pay no more than $1,062 monthly for their premium, regardless of the plan’s actual cost. The federal premium subsidy will pay the insurance costs above the 8.5% cap.
For the remainder of 2021, the open enrollment period for individual ACA health insurance will run from November 1, 2021 to December 15, 2021; however, some states will have later deadlines and details are available here: https://www.healthinsurance.org/faqs/what-are-the-deadlines-for-the-acas-open-enrollment-period/. The Biden administration has proposed an extension through January 15, 2022 and the AIA Trust will continue to keep AIA members informed as more information is forthcoming.
The AIA Trust formed a unique partnership with Pendella, a 50-state virtual insurance agency designed to support business owners and their employees with all of their individual and employee benefits needs. With over 50 years of combined experience in insurance, human resources, and benefits administration technology, the Pendella team, complete with licensed and salaried advisors, offers AIA Members streamlined access to affordable employee health plans, individual health plans, and intuitive benefits administration services.
Already have a group benefits plan?
AIA members have the potential to see significant savings on their group’s health plan premium by working with expert advisors who understand health plan strategy and can make suggestions based on your group’s specific needs, budget, current health status, and claims history. Pendella can help you to evaluate your options, from employer contributions to deductible amounts, or whether or not you should consider a financial strategy such as a Health Reimbursement Arrangement (HRA). With the no-cost benefits analysis that Pendella can provide, a member could save premium dollars for not only your firm but also for your employees.
For more information
The Kaiser Family Foundation provides a useful subsidy calculator, including FAQs, regarding the subsidies.
The legislation also provides subsidies for persons electing to continue their employer-sponsored coverage via COBRA. The COBRA subsidy will begin on April 1, 2021 and run through September 30, 2021. For additional information on the COBRA subsidies as well as information regarding extending subsidy eligibility to those who receive unemployment, visit HealthAffairs.org
Be sure to search our resources for help answering your questions about buying healthcare coverage, HRAs and HSAs, and coverage for employee architects, among other topics.
Learn more at GetPendella.com/AIA/