The American Rescue Plan Act of 2021

Huge savings on health coverage now available!

Good news! The COVID relief plan makes health coverage through HealthSource RI more affordable than ever. You could pay hundreds less per month. Some families are now paying $750 less a month. Others are now eligible to receive financial help, even if they didn’t qualify before. Also, if you lost your job, you may qualify for coverage as low as $2 a month.

Many existing customers have already had the changes automatically applied to their accounts, and others will see the adjustments in mid-June 2021. Rhode Islanders who don’t have health insurance can sign up for coverage through August 15, even if they have not experienced a qualifying life event.  Families and individuals can get an estimate by calling HealthSource RI at 1-855-840-4774. Get started today!

 

Health Coverage Through HealthSource RI Is Now More Affordable Than Ever

The American Rescue Plan Act (ARP) was recently signed by President Biden to help Americans during the ongoing COVID-19 pandemic. This federal law ensures that most HealthSource RI (HSRI) customers may receive additional financial help to make their health coverage more affordable. This means that most HSRI customers will see a decrease in their monthly coverage costs.

Customers who are already receiving tax credits/financial help each month to reduce your monthly coverage cost, you are likely to receive even more financial help. If you were not eligible to receive financial help in the past, you may soon be eligible. The ARP also increases the income limit on who can qualify for tax credits and now more people will qualify for financial help. Additionally, if you or a spouse received at least one week of unemployment income in 2021, you may be eligible for the maximum amount of tax credits for the rest of 2021. We are working hard to ensure these updates are made quickly to all customer accounts.

 

Examples of How the American Rescue Plan Will Lower Monthly Bills for Rhode Island Residents

Examples based on 2021 premium for the second lowest cost silver plan on HSRI.

  Monthly Premiums for a 30-year-old
FPL % Annual Income ACA American Rescue Plan 
140%  $    18,000.00 $52.90 $0.19
233%  $    30,000.00 $192.98 $83.11
349%  $    45,000.00 $310.22 $271.48
466%  $    60,000.00 $310.22 $310.221
       
  Monthly Premiums for a 45-year-old 
  Annual Income ACA American Rescue Plan
140%  $    18,000.00 $52.93 $0.24
233%  $    30,000.00 $193.03 $83.16
349%  $    45,000.00 $368.86 $271.53
466%  $    60,000.00 $394.67 $394.671
       
  Monthly Premiums for a 60-year-old 
  Annual Income ACA American Rescue Plan
140%  $    18,000.00 $53.14 $0.44
233%  $    30,000.00 $193.24 $83.36
349%  $    45,000.00 $369.07 $271.44
466%  $    60,000.00 $741.78 $425.44

1 No premium reduction because the cost of coverage is lower than the 8.5% of income affordability protection.

What Most HealthSource RI Customers Can Expect:
  • For customers who currently receive financial help, or are currently eligible to receive financial help, they will have received a notice explaining how their monthly costs may be lowered. Monthly invoices will reflect the new financial assistance customers will be receiving. These invoices will also reflect an additional amount for any past months in 2021 that customers were covered as the ARP provides for this financial assistance dating back to January 2021.
  • For customers who previously who previously did not qualify or apply for financial help, you may now be eligible. HSRI will be in contact about any new financial help you may now be eligible for.
  • For customers who received at least one week of unemployment payments in 2021, you may qualify for the maximum financial help. HSRI is here to help, and will be sending an update in June 2021.

Customers should contact us with any changes to your account (income, family size, mailing address, email address, etc.) to make sure you are receiving the right amount of financial help and that we are sending notices to the correct mailing or email address. Keep an eye out for additional notices from HSRI about these changes. They will come by mail or email according to your currently listed preference.

Enroll Today! 

If you need health coverage, HealthSource RI is here to help. HealthSource RI is offering a New Enrollment Period (NEP) to give uninsured Rhode Islanders more time to enroll in coverage. This NEP began on February 15, 2021 and goes through August 15, 2021. Reach out to us now to get covered. Click here to compare plans and get a quick quote. This enrollment period is open to all eligible Rhode Islanders. Coverage starts the first of the month following a complete enrollment.

Key Dates

February 23, 2021: Deadline to pick and pay for coverage starting March 1, 2021.

March 23, 2021: Deadline to pick and pay for coverage starting April 1, 2021.

April 23, 2021: Deadline to pick and pay for coverage starting May 1, 2021.

May 23, 2021: Deadline to pick and pay for coverage starting June 1, 2021.

June 23, 2021: Deadline to pick and pay for coverage starting July 1, 2021.

July 23, 2021: Deadline to pick and pay for coverage starting August 1, 2021.

August 15, 2021: This is the last day to pick and pay for 2021 coverage as part of the new federal enrollment period. Please note that if you enroll in August, your coverage will be active on September 1, 2021.

If you have questions about these changes or want to enroll in coverage, call us at 1-855-840-4774. Our call center is available Monday – Friday, 8am – 6pm.

*NEW* Changes for Taxpayers Who Received Advanced Premium Tax Credits (APTCs) for Tax Year 2020 *NEW*

HealthSource RI (HSRI) customers who received excess APTCs (sometimes called “financial help”) would normally need to pay back to the IRS. However, as part of the American Rescue Plan (ARP), any excess APTCs owed will be forgiven and does not need to be repaid. This forgiveness is for TAX YEAR 2020 ONLY. To learn more about these changes, ask your tax preparer or click here!

HSRI customers who have already filed their 2020 tax return and who have excess APTCs do not need to file an amended tax return or contact the IRS. Instead, taxpayers should follow the below procedures:

If a taxpayer has excess APTC, filed their return with Form 8962 and it's still being processed

The IRS will reduce the excess advance Premium Tax Credit repayment amount the taxpayer reported on their 2020 Form 1040 or Form 1040-SR, Schedule 2, Line 2, and Line 29 of Form 8962 to zero and process their return. There is no need to contact the IRS. If a taxpayer receives a IRS letter about excess APTC for tax year 2020, they should disregard the letter.

If a taxpayer has excess APTC and filed their return without Form 8962

You may be receiving a letter from the IRS. If you have excess APTCs for 2020, disregard the IRS letter asking for a missing Form 8962. The IRS will continue processing the 2020 return without Form 8962. If you didn’t get a letter about a missing Form 8962, the IRS will process the 2020 without Form 8962. If you didn’t file a Form 8962 but still reported an excess APTC repayment amount on their return, the IRS will reduce it to zero and process the return. There is no need to contact the IRS.

If a taxpayer paid an excess APTC repayment amount when they filed their return with Form 8962

Individuals in this situation should not file an amended tax return to get a refund of this amount. The IRS is taking steps to reimburse taxpayers who filed Form 8962, reported, and paid an excess APTC repayment amount with their 2020 tax return before the recent changes made by the American Rescue Plan Act of 2021. Individuals in this situation should not file an amended return solely to get a refund of this amount. The IRS will provide more details soon.

If a taxpayer is claiming net APTC and filed their return without Form 8962

You will receive a letter from the IRS asking for a completed Form 8962. Taxpayers claiming a net PTC must file Form 8962 when they file their 2020 tax return. If they filed a 2020 tax return and claimed a net PTC but did not file Form 8962 with their return, they should respond to the IRS notice they received or will soon receive. The IRS may need more information to process their 2020 return if there’s an amount claimed on Form 1040 or 1040-SR, Schedule 3, Line 8. Individuals are eligible for net PTC for 2020 if their PTC for 2020 is more than the APTC paid for health insurance coverage and the coverage of their family members for 2020, or if they are allowed a PTC for 2020 and were not eligible for APTC, or chose not to receive the benefit of APTC, at enrollment in their health plan for 2020.

If individuals have net PTC for 2020, they should review and respond to the IRS notice so that the IRS can finish processing their 2020 tax return and, if applicable, issue any refund due.

FREQUENTLY ASKED QUESTIONS ON THE AMERICAN RESCUE PLAN ACT (ARP) FOR HEALTHSOURCE RI CUSTOMERS IN 2021 AND 2022
How does the ARP help me to afford private health coverage?

The American Rescue Plan lowers health coverage premiums for customers of HealthSource RI by adding additional financial assistance.

I am in the U.S. on a visa and don’t qualify for Medicaid coverage because of my visa status. Will my premiums for private health insurance go down?

Yes, depending on your income, your monthly bill may decrease. The American Rescue Plan includes visa holders who don’t qualify for Medicaid coverage.

Do I have to enroll in a specific plan to receive financial assistance?

No, you can enroll in any plan – bronze, silver, gold, or platinum – and the financial help  you qualify for will be applied to the plan of your choice. Your monthly bill is determined by your income and family size. If you choose to enroll in a more expensive plan, your plan might cost more than 8.5% of income, but it also might have much lower out-of-pocket costs when you use medical services.

When will this new benefit be available to HealthSource RI customers?

HealthSource RI is updating our systems and will be reviewing all customer accounts. We will be sending notices and emails to customers, with more details about their account changes. This new benefit will be available to customers who already receive assistance starting in April 2021. The additional assistance to unemployed Rhode Islanders and those who were not previously eligible for financial assistance will be coming soon.

I do not have health coverage and want to enroll in coverage through HealthSource RI. What should I do to enroll in coverage and get financial help?

HealthSource RI is the only place you can get financial help to pay for high-quality health coverage. Visit HealthSourceRI.com/Calculator to compare plans or call us at 1-855-840-4774. Our customer service team is available Monday – Friday, 8am – 6pm.

Do I qualify for additional assistance if I received unemployment in 2021?

Yes, you qualify for additional assistance if you received unemployment at any time in 2021. All types of unemployment compensation qualify. This includes Regular Unemployment Compensation, Pandemic Emergency Unemployment Compensation (PEUC), Extended Unemployment Compensation, and Pandemic Unemployment Assistance. HealthSource RI is updating our systems and will be reviewing all customer accounts. The changes related to unemployment will be implemented over the coming months. We will be sending notices and emails to customers, with more details about their account changes. You can call us at 1-855-840-4774 for more information.

I am a HealthSource RI customer and already get financial assistance that lowers my monthly bill. Will my monthly bill go down?

Yes, the American Rescue Plan will decrease your monthly bill so long as your income remains the same. If your income changes, your financial assistance may also change.

If I enroll in health coverage through HealthSource RI, how long will I receive this additional financial help to lower my monthly bill?

You will receive the increased ARP financial help throughout the remainder of 2021 and all of 2022 unless the federal government extends this timeline.

Will everyone’s monthly bill be reduced?

No, not everyone will qualify for additional financial help because your monthly bill is based on your income and family size. Because RI’s premiums are already among some of the lowest in the country, some people already pay less than 8.5% of their income on premiums.

I am currently enrolled in a health plan through HealthSource RI and pay full price for my premiums. What do I have to do to get financial help?

HealthSource RI is updating our systems and will be reviewing all customer accounts. We will be sending notices and emails to customers, with more details about their account changes. In the meantime, make sure your income and other account information is up to date. If you did not apply for financial assistance at all, but you want to now, you should do so. You can contact us at 1-855-840-4774 for more help.

Examples of How the American Rescue Plan Will Lower Monthly Bills for Rhode Island Residents

Examples based on 2021 premium for the second lowest cost silver plan on HSRI.

  Monthly Premiums for a 30-year-old
FPL % Annual Income ACA American Rescue Plan 
140%  $    18,000.00 $52.90 $0.19
233%  $    30,000.00 $192.98 $83.11
349%  $    45,000.00 $310.22 $271.48
466%  $    60,000.00 $310.22 $310.221
       
  Monthly Premiums for a 45-year-old 
  Annual Income ACA American Rescue Plan
140%  $    18,000.00 $52.93 $0.24
233%  $    30,000.00 $193.03 $83.16
349%  $    45,000.00 $368.86 $271.53
466%  $    60,000.00 $394.67 $394.671
       
  Monthly Premiums for a 60-year-old 
  Annual Income ACA American Rescue Plan
140%  $    18,000.00 $53.14 $0.44
233%  $    30,000.00 $193.24 $83.36
349%  $    45,000.00 $369.07 $271.44
466%  $    60,000.00 $741.78 $425.44

1 No premium reduction because the cost of coverage is lower than the 8.5% of income affordability protection.

Do I qualify for financial help if I am eligible for other coverage such as Medicaid, Medicare, or employer-sponsored coverage?

No, you do not qualify for financial help to lower your monthly bill if you are eligible for other coverage such as Medicaid, Medicare, or employer-sponsored coverage.

I did not qualify for financial help when I applied for 2021 coverage. Does the American Rescue Plan reduce my monthly bill?

Depending on how much your plan costs compared to your income, it may. The American Rescue Plan limits your monthly bill so you will not pay more than 8.5% of your Adjusted Gross Income (AGI) on premiums for the second-lowest-cost silver plan. For example, if you are a 30-year-old resident with an annual income of $45,000 and already pay the full monthly premium of $310/month for a second-lowest-cost silver plan, your premium will go down to $271/month.

The Affordable Care Act (ACA) provided financial help to people who had incomes up to 400% of Federal Poverty Level (FPL) — $51,040 per year for an individual (or $104,800 per year for a family of 4). Having a higher income meant that you did not previously qualify for premium reductions under the ACA. The ARP makes it so that no one will pay more than 8.5% of their Adjusted Gross Income (AGI) income on for a second-lowest-cost silver plan premium through HealthSource RI.

What if my income changes?

Your monthly bill is based on your income. If your income goes down, you may qualify for lower monthly coverage costs. If your income goes up, your monthly health coverage costs may also go up. However, you will not pay more than 8.5% of your Adjusted Gross Income (AGI) for a second-lowest-cost silver plan premium through HealthSource RI.

I qualify for financial help, but I chose to pay my full monthly premium instead. Can I claim this increase in financial assistance during tax time when I file my taxes?

Yes, you can claim the increased amount of financial assistance when you file your taxes. When you do that, each month you pay full price for premiums.  You may also choose to take a portion of the tax credit/financial help now and take the rest when you file taxes.

I am currently enrolled with HealthSource RI and receive financial help. What do I have to do to lower my monthly bill?

Nothing. HealthSource RI is updating our systems and will be reviewing all customer accounts. We will be sending notices and emails to customers, with more details about their account changes. Based on your current account information, you may see additional financial help reflected in your May invoice from HealthSource RI, sent in early April.  Because ARP makes these changes retroactive to January 1, 2021, you may receive additional assistance during the rest of 2021 if you’ve been covered since January 2021. If you have already paid for April before we make an adjustment to increase your assistance for April, any credit will be applied to your next bill.

I’ve been laid off. What are my options for affordable or no-cost health coverage?

HealthSource RI is the only place you can get financial help to pay for high-quality health coverage. If you qualify for no-cost coverage through Medicaid, our dedicated customer service team can help you enroll. Visit HealthSourceRI.com/Calculator to compare plans or call us at 1-855-840-4774. Our customer service team is available Monday – Friday, 8am – 6pm.

HealthSource RI connects you with health and dental insurance from these companies:

Individuals & Families: 1-855-840-4774
Employers & Employees: 1-855-683-6757