The American Rescue Plan Act of 2021 (ARPA) changes the Affordable Care Act to make Marketplace Coverage more affordable. Individuals who earn up to 150% of the federal poverty level and individuals who receive unemployment insurance in 2021 now receive assistance with purchasing health coverage. ACA Marketplace premium tax credits are now available to higher-income individuals who otherwise would not qualify for assistance in 2021 and 2022. The increased assistance extends through 2022.
- Marketplace subsidies are extended to people with incomes who would not otherwise qualify. Premium tax credits will be available to eligible individuals with income above 400% of the federal poverty level for 2021 and 2022.
- Marketplace subsidies are increased for lower-income people who already qualify. The maximum premium percentage contribution is reduced for all eligible income levels.
- Marketplace subsidies are offered to anyone who receives unemployment benefits in 2021. If someone receives or is approved to receive unemployment benefits during 2021, their income will be treated as no higher than 133% of the federal poverty level.
- Taxpayers who wrongly estimated their income in 2020 do not have to repay excess premium tax credits.
The new law also earmarks funds to help modernize the Marketplace and help state-based exchanges update their systems to comply with new rules.