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.
- pennie.com 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 firstname.lastname@example.org 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.