How much can I save with enhanced subsidies?

Most households save hundreds or thousands of dollars per year. The law caps premiums at 8.5% of income and provides free coverage for those earning up to 150% of the Federal Poverty Level.

Who is newly eligible for subsidies under ARPA?

The American Rescue Plan removed the income cap, making households earning over 400% of the Federal Poverty Level eligible for subsidies for the first time. No one pays more than 8.5% of their income for benchmark coverage.

What benefits are available if I received unemployment?

If you received unemployment compensation during the year, you qualify for maximum subsidies regardless of actual income, including $0 premiums for Silver 94 plans with the lowest deductibles and copays.

How long will American Rescue Plan benefits last?

The enhanced subsidies have been extended through December 31, 2025, thanks to the Inflation Reduction Act. Congress would need to pass new legislation to extend benefits beyond 2025.

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American Rescue Plan Act FAQs

Q: What is the American Rescue Plan Act?

The American Rescue Plan Act is a federal law that significantly expanded health insurance subsidies through Covered California, making coverage more affordable for millions. These benefits have been extended through 2025 by the Inflation Reduction Act.

Understanding the enhanced subsidies and expanded coverage options available through the American Rescue Plan Act and Inflation Reduction Act.

Good News! The enhanced subsidies from the American Rescue Plan have been extended through 2025 by the Inflation Reduction Act, making health insurance more affordable for millions of Californians.

What is the American Rescue Plan Act?

The American Rescue Plan Act (ARPA) is a federal law passed in March 2021 that significantly expanded health insurance subsidies and made coverage more affordable through Covered California. The Inflation Reduction Act, passed in August 2022, extended these benefits through 2025.

Key Features of the American Rescue Plan:

Increased subsidies: More financial help for low and middle-income families
Eliminated income cap: Households above 400% FPL now qualify for assistance
Lower premiums: No one pays more than 8.5% of income for benchmark Silver plan
Unemployment protection: Special benefits for those receiving unemployment compensation
Extended through 2025: Benefits continue thanks to the Inflation Reduction Act

How much more can I save with enhanced subsidies?

The American Rescue Plan significantly increased the amount of financial assistance available through Covered California. Most households will save hundreds or even thousands of dollars per year on their health insurance premiums.

Income Level	Old Cap	New Cap (2021-2025)	Potential Savings
Up to 150% FPL	3.1% - 4.1%	0%	$0 premiums
150% - 200% FPL	4.1% - 6.5%	0% - 2%	Up to 70% savings
200% - 250% FPL	6.5% - 8.3%	2% - 4%	Up to 50% savings
250% - 400% FPL	8.3% - 9.8%	4% - 8.5%	Up to 30% savings
Above 400% FPL	No subsidy	8.5% cap	New eligibility!

Example: A family of four earning $80,000/year (about 290% FPL) could save over $200/month on their premiums compared to pre-ARPA rates.

Who is newly eligible for subsidies?

The American Rescue Plan removed the "subsidy cliff" that previously cut off financial assistance for households earning more than 400% of the Federal Poverty Level (FPL).

Now Eligible

Middle-class families who previously earned too much:

Single person earning over $51,520
Family of 2 earning over $69,680
Family of 4 earning over $106,000

*2024 income limits for reference

8.5% Income Cap

No one pays more than 8.5% of income for benchmark Silver plan:

$75,000 income = max $531/month
$100,000 income = max $708/month
$150,000 income = max $1,063/month

*For benchmark Silver plan coverage

This change is especially beneficial for older adults aged 50-64 who often face the highest premiums but don't yet qualify for Medicare.

What special benefits are available if I received unemployment?

If you received unemployment compensation at any point during the year, you may qualify for maximum subsidies regardless of your actual income.

Important Unemployment Benefit

Anyone who received at least one week of unemployment compensation during 2021-2025 is treated as having income at 133% of the Federal Poverty Level, which means:

$0 monthly premiums for Silver 94 plans (highest level of coverage)
Maximum cost-sharing reductions (lowest deductibles and copays)
Applies even if your income is higher than 133% FPL

How to claim this benefit:

Report that you received unemployment compensation when applying or updating your Covered California application
Provide documentation of unemployment benefits (like Form 1099-G)
The enhanced subsidies will be applied automatically

This benefit can save families thousands of dollars per year and is available through 2025!

How does ARPA help with COBRA coverage?

The American Rescue Plan provided temporary COBRA premium assistance for eligible individuals who lost employer-sponsored health coverage.

Note: The COBRA subsidy provision ended on September 30, 2021. However, you may still have better options through Covered California.

Compare Your Options:

Factor	COBRA	Covered California
Monthly Cost	Full premium + 2% admin fee	Often lower with subsidies
Subsidies Available	No (subsidy ended 9/30/21)	Yes, enhanced through 2025
Network	Same as employer plan	Multiple options available
Duration	18-36 months maximum	No time limit

Recommendation: Most people save money by switching from COBRA to a Covered California plan, especially with the enhanced ARPA subsidies.

How long will the American Rescue Plan benefits last?

The enhanced subsidies and expanded eligibility have been extended through December 31, 2025, thanks to the Inflation Reduction Act passed in August 2022.

Timeline of Benefits

March 2021: American Rescue Plan Act signed into law
April 2021: Enhanced subsidies became available
2021-2022: Original ARPA benefits period
August 2022: Inflation Reduction Act extends benefits
2023-2025: Enhanced subsidies continue
December 31, 2025: Current extension expires

What happens after 2025? Congress will need to pass new legislation to extend the enhanced subsidies beyond 2025. Without action, subsidies would revert to pre-ARPA levels.

Take Action Now

Don't wait to take advantage of these enhanced benefits! The subsidies are available now and can significantly reduce your monthly health insurance costs.

Get Your Quote Today