The American Rescue Plan
Did you know that because of recent federal legislation called the American Rescue Plan (ARPA) you may qualify for premium tax credits? These health insurance tax credits may make your health plan more affordable.
As your friends and neighbors right here in Vermont, we believe it is important to notify you about ways in which you can save money — and possibly reduce your monthly premiums by thousands of dollars annually.
The American Rescue Plan, recently signed into law by President Joe Biden, will save Vermonters a considerable amount of money by lowering their monthly health insurance premiums and by expanding coverage to those who previously made too much to qualify for help. This stimulus bill provides affordable health insurance to Vermonters.
If you purchased, or plan to purchase a Qualified Health Plan through Vermont Health Connect, you may be able to significantly lower your health insurance premiums.
Frequently Asked Questions
With the new law, there is no threshold. Households are expected to pay no more than 8.5 percent of their income towards health insurance premiums for the benchmark plan (MVP’s VT Plus Silver 2 HDHP). So, for example:
Vermonters on single-only plans, the tax credits apply to annual income levels up to $105,771.
Vermonters on family plans, the tax credits apply to annual income levels up to $297,216.
And, eligible Vermonters who collected unemployment benefits during 2021 can get premium tax credits, regardless of their annual income.
Our Open Enrollment Period for Qualified Health Plans starts on November 1. This is when Vermonters can sign up for a new plan through Vermont Health Connect. If you enroll during the fall Open Enrollment Period, and you don't have a qualifying event, your plan changes will take effect January 1, 2022.
You will likely qualify for additional savings. Don’t miss out! Contact Vermont Health Connect today to see how the new law affects your monthly premiums. You can call Vermont Health Connect at (855) 899-9600. When you contact them, please share code ARPA21.
If you buy health insurance through your employer this will not affect you. However, if you lose your job and you qualify for unemployment, the law provides full coverage of COBRA premiums starting April 1, 2021 through September 30, 2021, even if you had previously declined COBRA coverage. Please check with your employer for more details regarding your eligibility and what this means for your COBRA coverage.
Your tax credit will be multiplied by the number of months you are enrolled through Vermont Health Connect, so it benefits you to act sooner rather than later.
Next winter, you will receive a tax form listing the months you had coverage through Vermont Health Connect. You will need to use this form to claim your tax credit when you file your 2021 federal taxes.