Broker Check

Melanie’s News - The American Rescue Plan Act (ARPA)…. Some Key Insurance Components

April 20, 2021

April News

With the recent passing of The American Rescue Plan Act (ARPA), we have summarized some key components as it relates to Health Insurance.


Cobra Premium Subsidy

  • The American Rescue Plan Act requires eligible Employers to offer COBRA or State Continuation coverage to Assistance Eligible Individuals (AEI’s) free of charge (a subsidy of 100%)
  • AEI’s must be qualified beneficiaries who lost group coverage due to involuntary termination or reduction in hours
  • Eligibility of subsidy is from April 1st 2021 – September 30th 2021


Increase to Dependent Care FSA Annual limit

  • The new Dependent Care FSA Annual limit for pre-tax contributions has increased to $10,500 for single taxpayers and married couples filing jointly. *this is an increase from $5,000 in previous years*
  • This increased limit applies to plan years starting after December 31st 2020 and before Jan 1, 2022.


Extension of Marketplace Open Enrollment and Premium Subsidy Availability

  • Open Enrollment extended in the Marketplace until August 15 2021 for ALL consumers
  • Increased eligibility for financial assistance (premium subsidy) via the Marketplace
  • This expansion will provide additional assistance for those already eligible and “new” assistance for some who previously were not eligible.
  • has a Savings Calculator which will help with getting an idea of cost savings
  • We are a PENNIE certified broker and would be happy to help you through this process


Give us a call at 215-579-5601 or email us at if you have any questions. 

If you have any life changes or updates that you need us to address (I.e., marriage, birth of a child, loss of coverage, etc) please do not hesitate to contact us. 



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