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Pandemic relief includes provisions to help millions

The latest coronavirus relief package did more than dole out $1,400 checks. The law also made health insurance free for millions more people and reduced costs for others, at least for now.

The American Rescue Plan, which President Joe Biden signed in March, expanded subsidies for people buying their own insurance on Affordable Care Act exchanges. In addition, anyone who receives unemployment benefits this year can qualify for zero-premium health insurance through the exchanges, regardless of income.

Many people who are uninsured will qualify for free or low-cost coverage through the exchanges or Medicaid, said Daniel Mcdermott, a policy analyst with KFF, the nonpartisan health care think tank formerly known as the Kaiser Family Foundation.

People who lost their jobs but want to keep their former employer’s health insurance also may get help. If you don’t qualify for group health insurance elsewhere, the federal government will pay your COBRA premiums for up to six months.

Millions qualify

Since 2013, ACA exchanges have allowed people to buy individual and family health insurance policies, usually with tax credits that reduced their premiums and other costs. ACA has four levels: bronze, silver, gold and platinum. Bronze plans typically have the lowest monthly premiums and the highest deductibles; platinum plans have the highest premiums and the lowest deductibles.

Before the new relief package, people with incomes greater than 400 percent of the federal poverty level typically didn’t qualify for subsidies to reduce their premiums. Now people with incomes up to 600 percent of the poverty level — up to $76,560 for a single person or $157,200 for a family of four — can qualify, according to KFF. (KFF’S calculator can show you how much you’d likely pay for ACA coverage.)

The relief package reduced premiums for the vast majority of people who buy their own insurance, Mcdermott said. In addition, nearly half of the 29 million uninsured now qualify for a free plan.

Those with incomes below 250 percent of the poverty line also will benefit from reduced costsharing, which means lower deductibles and other out-of-pocket costs. At 150 percent of the poverty line — income of $19,000 for a single person and just under $40,000 for a family of four — people qualify for zero-premium silver plans with annual deductibles of just $177.

Millions of unemployed people will be eligible for similar coverage. Anyone who receives unemployment benefits for any part of 2021 can qualify for a zero-premium silver plan with the maximum costsharing reductions, Mcdermott said. “The health insurance exchanges are going to look at you as if your income was under 150 percent” of poverty level, he said.

How to qualify

The expansion of Affordable Care Act subsidies is retroactive to Jan. 1 and will continue through Dec. 31, 2022. People must purchase their insurance from Healthcare.gov or their state’s ACA exchange to qualify for subsidies. The act also created a new special enrollment period that extends through Aug . 15, 2021.

COBRA coverage

Many people prefer to keep their employer’s health insurance coverage when they lose their jobs, although the cost is often prohibitive. Most employers pay a large portion of the cost to cover workers, but former employees who opt to extend their coverage using the federal COBRA law must pay the premium plus a 2 percent administrative fee.

Thanks to the new law, employers are required to provide free COBRA coverage from April 1 through Sept. 30 to eligible former employees who lost their health care coverage because of involuntary termination or a reduction in hours, said financial planner and certified public accountant Kelley Long, consumer financial education advocate for the American Institute of CPAS. The employers’ cost will be offset by federal tax credits.

If you’re eligible for other group health coverage — through a spouse, new employer or Medicare — you won’t qualify for free COBRA.