New savings for health plans
You may be able to get more savings on health insurance coverage due to the American Rescue Plan (ARP). Under the new law:
- More people than ever before qualify for help paying for health insurance, even those who weren’t eligible in the past because of their income.
- Most people currently enrolled in a plan through Connect for Health Colorado may qualify for more tax credits.
There are two types of financial help you can qualify for:
Premium tax credits that lower your monthly premiums
Cost-sharing reductions that give you healthcare discounts when you go to the doctor, pick up a prescription, or if you need to pay your deductible.
Depending on your income range and household size, you can qualify for lower monthly premiums OR for BOTH lower monthly premiums and cost-sharing reductions.
Lower Your Monthly Premiums (Advanced Premium Tax Credits)
The financial help you can get to lower your monthly payment is called a Premium Tax Credit. Every family is unique. You can get financial help based on your family’s specific needs and situation including:
- Your family size;
- Where you live; and
- Your family’s estimated annual income.
You can use the financial help in two different ways:
- Apply the savings in advance to lower your monthly premiums.
- Wait until you file your taxes to get a premium tax credit added to your tax refund.
Healthcare Discounts (Cost-Sharing Reductions)
If you do qualify for lower out-of-pocket costs AND you sign up for a silver plan, healthcare discounts are applied automatically when you go to the doctor or fill a prescription. Plans with healthcare discounts also have a lower out-of-pocket maximum – the total amount you’d have to pay for covered medical services per year. These healthcare discounts are called Cost-Sharing Reductions.