COVID-19 Relief Marketplace Subsidy Expansions
The American Rescue Plan Act of 2021 (COVID-19 relief) law passed in March 2021 expands Marketplace subsidies above 400% of poverty and also increases subsidies for those making between 100% and 400% of the poverty level, for two years (2021 and 2022), consistent with what President Biden proposed during his campaign.
These additional subsidies will yield substantially lower premium payments for the vast majority of the nearly 15 million uninsured people who are eligible to buy on the Marketplace and the nearly 14 million people insured on the individual market. With some exceptions (in the case of the highest income enrollees whose premiums may not be high enough to qualify for a subsidy), most of these 29 million people could see lower health insurance premiums as a result of these subsidies, and many could also afford lower deductible plans. However, it is far from certain how many people will take advantage of the new financial assistance.
The COVID-19 relief subsidy schedule increases subsidies across the board, notably extending them for the first time to people with incomes over 400% of the poverty level and guaranteeing access to a plan with a zero dollar premium payment for people with incomes between 100-150% of poverty. The COVID-19 relief law also expands Marketplace subsidies to people receiving unemployment insurance (UI), which we discuss more below.