American Rescue Plan Act 2021

Disclaimer: The American Cancer Society does not offer legal advice. This information is intended to provide general background in this area of the law.
 

The American Rescue Plan Act takes effect April 1, 2021. This law addresses many of the financial problems caused by the COVID-19 pandemic. One portion of the law focuses on lowering insurance premiums and improving access to affordable health care coverage.

The law will provide more financial support to help with the costs of health care coverage for many Americans. The law is in effect for 2021 through 2022.

  • People who do not currently have insurance will be able to sign up for lower cost plans through health insurance marketplaces until a certain date.
  • Those who currently have insurance through a marketplace may see a decrease in their premiums. They can also change their plans up until a certain date.

This act will also help people who were laid off cover premium costs if they chose to keep their employer-sponsored health care plans (COBRA). The act provides aid to cover 100% of COBRA premium costs for a certain period of time.

For details about this law, see American Rescue Plan Act (whitehouse.gov). For information on when and how to enroll in a Marketplace plan, see New, lower costs on Marketplace coverage (healthcare.gov).

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Kaiser Family Foundation. How the American Rescue Plan Will Improve Affordability of Private Health Coverage. Released March 17, 2021. Accessed from https://www.kff.org/health-reform/issue-brief/how-the-american-rescue-plan-will-improve-affordability-of-private-health-coverage/ on March 22, 2021.

The White House. American Rescue Plan. Whitehouse.gov. Accessed from https://www.whitehouse.gov/american-rescue-plan/ on March 19, 2021.

U.S. Centers for Medicare and Medicaid. New, lower costs on Marketplace coverage. Healthcare.gov. Accessed from https://www.healthcare.gov/more-savings/ on March 22, 2021.

U.S. Department of Health and Human Services. Fact Sheet: The American Rescue Plan: Reduces Health Care Costs, Expands Access to Insurance Coverage and Addresses Health Care Disparities. Hhs.gov. Last updated March 12, 2021. Accessed from https://www.hhs.gov/about/news/2021/03/12/fact-sheet-american-rescue-plan-reduces-health-care-costs-expands-access-insurance-coverage.html on March 19, 2021. 

References

Kaiser Family Foundation. How the American Rescue Plan Will Improve Affordability of Private Health Coverage. Released March 17, 2021. Accessed from https://www.kff.org/health-reform/issue-brief/how-the-american-rescue-plan-will-improve-affordability-of-private-health-coverage/ on March 22, 2021.

The White House. American Rescue Plan. Whitehouse.gov. Accessed from https://www.whitehouse.gov/american-rescue-plan/ on March 19, 2021.

U.S. Centers for Medicare and Medicaid. New, lower costs on Marketplace coverage. Healthcare.gov. Accessed from https://www.healthcare.gov/more-savings/ on March 22, 2021.

U.S. Department of Health and Human Services. Fact Sheet: The American Rescue Plan: Reduces Health Care Costs, Expands Access to Insurance Coverage and Addresses Health Care Disparities. Hhs.gov. Last updated March 12, 2021. Accessed from https://www.hhs.gov/about/news/2021/03/12/fact-sheet-american-rescue-plan-reduces-health-care-costs-expands-access-insurance-coverage.html on March 19, 2021. 

Last Revised: March 23, 2021

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