The recent American Rescue Plan Act of 2021 includes significant changes to the Affordable Care Act (ACA). From now until August 15, those eligible for ACA coverage can switch their healthcare plans and save money, thanks to the expanded subsidy guidelines available to most Americans. This perk is a rare opportunity to speak with your agent about how they can get your family members better ACA coverage for a lower monthly premium rate! Check out these ACA changes in the American Rescue Plan.
ACA Changes in the American Rescue Plan
The American Rescue Plan includes five main changes to the Affordable Care Act that will support and improve both accessibility and affordability of the health insurance marketplace. The act will support the ACA by:
- Extending ACA subsidies to those whose income was too high to qualify for 2021 and 2022 coverage.
- Increasing those subsidies currently offered through the premium tax credit program for 2021 and 2022 plans.
- Providing those receiving unemployment benefits with more substantial subsidies through the premium tax credit program for 2021 and 2022 plans.
- Protecting taxpayers who inaccurately estimated their income for 2020 due to the onset of the COVID-19 pandemic from having to repay premium tax credits during tax season
- Providing $20 million for state-based health insurance marketplaces to modernize and provide updated services in compliance with the American Rescue Plan.
Those who do not currently have ACA coverage are eligible to apply, while those with ACA plans are eligible to switch plans.
Better Coverage at a Lower Cost
These changes offer a golden opportunity for health insurance policyholders to save money and get better health coverage! Nearly everyone on an ACA plan, and those eligible for ACA coverage, may receive some additional subsidy that can help them protect their families while saving money.
A good agent will keep in touch with you throughout the year and in case anything changes with your plan. If you haven’t heard from your agent yet, call us at 844-410-1320 to speak to a licensed agent about your healthcare coverage choices today!
Info on the American Rescue Plan
Congress passed the American Rescue Plan Act on March 10 of this year. The legislative package includes a massive $1.9 trillion in relief for industries, businesses, and individuals. It is aimed at preventing another national economic crisis following the COVID-19 pandemic. Perhaps the most widely recognized portion of the act is the distribution of $1,400 stimulus checks to individuals who make under a certain income threshold. Along with providing an enrollment extension and expanded subsidies for the Affordable Care Act, the American Rescue Plan also offers changes for both Medicare and Medicaid.
In 2025, significant changes to the American Rescue Plan (ARP) are poised to impact healthcare coverage and federal funding across the United States.
Expiration of Enhanced Premium Tax Credits
The ARP, enacted in 2021, expanded premium tax credits under the Affordable Care Act (ACA), making health insurance more affordable for millions. These enhancements led to an increase in insured individuals from 11.2 million in 2021 to 20.8 million in 2024. However, these subsidies are set to expire at the end of 2025. If Congress does not act to extend them, healthcare premiums will rise, potentially causing millions to lose coverage.
Reversal of ACA Flexibilities
The current administration plans to reverse several ACA flexibilities introduced during the previous presidency to reduce federal spending by $11 billion. Proposed changes include ending the monthly enrollment opportunity for low-income individuals, shortening the annual open enrollment period by a month, and requiring marketplace enrollees to settle overdue premiums before obtaining new coverage. Additionally, mandatory coverage of gender-affirming care as an essential health benefit is slated to end starting in 2026.
Medicaid Program Modifications
Republican lawmakers are considering significant cuts and the implementation of work requirements for Medicaid, which provides health coverage to approximately 80 million Americans. While proponents argue these measures will reduce federal spending, critics express concern that such changes could lead to coverage losses, particularly among vulnerable populations, and strain healthcare facilities serving low-income communities.
Got Medicare Questions?
We hope this information on the recent ACA changes is helpful to you.
If you have questions about your Medicare coverage, call Empower Brokerage today. Let us help with your Medicare questions so you can get back to the activities you enjoy the most. (888) 446-9157 or click here to get an INSTANT QUOTE
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This article was updated 3/12/2025.