Eligibility for Millions and Low Premiums
President Biden has recently signed into law the American Rescue Plan Act (ARPA). The name speaks for itself – its aim is to provide relief to Americans who have been adversely affected by the COVID-19 pandemic. One of the various benefits of the plan is preserving and expanding health coverage in the country. Data indicates that approximately 2 to 3 million have lost employer-based coverage from March to September last year. Also, before the COVID-19 crisis began 30 million Americans were without health coverage for various reasons. To combat these numbers, President Biden has made an effort to reduce premiums and make care accessible for more income groups. There are new benefits available for both State-Based Marketplaces (SBM) and the Federally-Facilitated Marketplace (FFM).
According to the Kaiser Family Foundation (KFF), 1.4 million uninsured people are newly eligible for marketplace subsidies. 63% of the uninsured population in the U.S. now can receive a subsidy on exchange. Also, 92% of those who purchased a plan on or off the exchange qualify for subsidies. KFF also estimates that for those with incomes lower than 150% of poverty will save on average 33% and will qualify for $0 silver plans. And those between 400% and 600% above the poverty line can save on average $213.
Overview of New Benefits On-Exchange
– Consumers who enroll in a marketplace plan will not pay more than 8.5% of their household income.
– Consumers who earn more than 400% of the Federal Poverty Level are newly eligible for subsidies.
– Consumers who receive unemployment compensation during 2021 have the opportunity to receive the maximum amount of subsidies if enrolled on a marketplace plan.
– Increased tax credits to reduce premiums (for those eligible).
– Those with pre-existing marketplace plans will have lower premiums
– Higher income levels will be eligible for more financial help.
Insurance Agents Needed
This is a huge opportunity for insurance agents to help the millions of Americans without health coverage. The American Rescue Plan has opened a whole new segment of eligible Americans.
Those who are currently on-exchange will have lower premiums. For those who already receive low premiums, CMS put out a fact sheet that states four out of five enrollees will find a plan for $10 or less/month plus premium tax credits. And 50% will be able to find a Silver plan for $10 or less with tax credits.
Those off-exchange have an opportunity to receive large subsidies if they switch to a marketplace plan. Off-exchange consumers can simply apply and see their potential for savings.
As an insurance agent this should signal to you to be prepared for an influx of business. Consumers are either newly eligible or have pre-existing coverage at a lower rate. Time to get to work!
Insurance Agents Needed
iPros Insurance Professionals is a top rated Field Marketing Organization offering a full portfolio of plans and support services. iPros is consistently a top producer for State-Based Marketplaces and the Federally-Facilitated Marketplace. Whether you are in a state that offers a State-Based Marketplace or utilizes the Federally-Facilitated Marketplace we can take you to the next level. We operate in multiple states! You can see which states we are licensed in here. Feel free to contact us for more information.