ARPA Individual Subsidy Changes: June 2021
Health Insurance Premium Assistance is Increased and Access is Broadened
People who have individual policies with Covered California may have noticed a recent reduction in their monthly premium. This was the result of a new provision under the recent American Rescue Plan Act (ARPA). There is no action required by Californian’s written through the Covered California, the credit should just automatically appear, if you were subsidy eligible.
HOWEVER, what many Californians don’t understand is that the 600% of Federal Poverty Level limit has been removed as well. So, now anyone who pays more than 8.5% of their projected 2021 Household Adjusted Gross Income for an individual health plan may be subsidy eligible.
The quick math looks something like this:
Adjusted Gross Income ÷ 12 = X (X= your monthly income)
If your monthly health premium is > .085X you could get premium assistance!
Example:
$150,000 ÷ 12 = $12,500 (monthly income)
$12,500 x 8.5% = $1,062.50
If your premium is over $1,062.50 you could get premium assistance!
If this is your case, it is important that you contact our office ASAP and consider moving your policy to Covered California, as anyone written directly with a carrier will NOT be subsidy eligible. Please reach out to tarah@petersmilam.com or you can call her directly at (805) 456- 8519 if you need help.
Separate Note: If you, or your children were eligible for Medi-Cal, but decided to enroll in a plan directly with a carrier, you most likely will not benefit from this change and should remain enrolled directly.
As always, if you have any questions or if we can help in any way, please reach out!
Call us at (805) 687 - 3225, or send us an email at info@petersmilam.com. We can't wait to hear from you!
-Dave Peters & Steve Milam
