Individual costs of health insurance are going down

The recently executed American Rescue Plan, signed into law by the Biden-Harris administration, means reduced health insurance costs for many New Mexicans.

The plan guarantees people will pay no more than 8.5 percent of their household incomes on their health insurance premiums when purchasing individual and family (nonemployer-based) health coverage. In short, the plan makes major improvements in both access and affordability by increasing financial assistance for purchasing health insurance coverage.

Additionally, with many people having lost their jobs due to the pandemic, beginning in July 2021, the plan allows people who have received unemployment compensation during any week in 2021 to receive premium tax credits to help pay for 2021 health insurance coverage.

Beginning April 1, individuals who obtain health insurance through the federal marketplace could be eligible for the increased premium tax credits. According to the Biden-Harris administration:

Premiums will decrease, on average, by $50 per person per month and $85 per family policy per month.

Four out of five will be able find a plan for $10 or less per month after tax credits, and over 50 percent will be able to find a Silver plan for $10 or less per month.

One out of four enrollees will be able to upgrade to a higher plan category (metal level) that offers less out-ofpocket costs at the same or lower premium compared to what they experienced prior to accessing the improvements through the American Rescue Plan.

The special enrollment period is open now through Aug. 15. If you are eligible for the reduced premium, you can make changes to receive the lower price. If you do not make changes, the price adjustment will be made when you file your 2021 taxes next spring.

To find out your options, go to healthcare.gov or call 800-3182596 (TTY: 855-889-4325). You can also contact beWellnm at 833-862-3935.

More Information and Resources:

To read the HHS fact sheet, visit /tinyurl.com/6k39dt5j.

To read the CMS fact sheet, visit tinyurl.com/43pzp5as.