The American Rescue Plan Act of 2021
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.
Most customers who are already receiving tax credits/financial help each month to reduce your monthly coverage cost may receive even more financial help. The ARP also increases the income limit on who can qualify for tax credits. This means that if you were not eligible to receive financial help in the past, you may now be eligible.
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 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. This federal benefit expires December 31, 2021. Customers who previously received this benefit are encouraged to compare plans and see what financial help they may be eligible to receive at HealthSourceRI.com/Calculator.
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.
*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 much financial help am I eligible for?
The table below compares examples of monthly coverage costs (based on age and income) before the ARP vs. with the current ARP changes in place. The costs listed are for the second-lowest cost Silver plan available through HealthSource RI.
|
Monthly Premiums for a 30-year-old |
||
|
Annual Income |
Pre-ARP |
Current |
|
$ 18,000.00 |
$52.90 |
$0.19 |
|
$ 30,000.00 |
$192.98 |
$83.11 |
|
$ 45,000.00 |
$310.22 |
$271.48 |
|
$ 60,000.00 |
$310.22 |
$310.221 |
|
Monthly Premiums for a 45-year-old |
||
|
Annual Income |
Pre-ARP |
Current |
|
$ 18,000.00 |
$52.93 |
$0.24 |
|
$ 30,000.00 |
$193.03 |
$83.16 |
|
$ 45,000.00 |
$368.86 |
$271.53 |
|
$ 60,000.00 |
$394.67 |
$394.671 |
|
Monthly Premiums for a 60-year-old |
||
|
Annual Income |
Pre-ARP |
Current |
|
$ 18,000.00 |
$53.14 |
$0.44 |
|
$ 30,000.00 |
$193.24 |
$83.36 |
|
$ 45,000.00 |
$369.07 |
$271.44 |
|
$ 60,000.00 |
$741.78 |
$425.44 |
1 At this income level, for this individual, there is no reduction in monthly cost because the cost of coverage is already lower than 8.5% of their income (as outlined by the federal Affordable Care Act).
Do I have to enroll in a specific plan to receive this financial help?
Not necessarily. HealthSource RI offers a variety of high-quality, low- or no-cost coverage plans from top insurers. You can enroll in any plan and the financial help you qualify for will be applied to the plan of your choice. The cost of your plan is determined by many factors including your household income and family size. Please note that if you also qualify for more financial help in the form of Cost Sharing Reductions (lower deductible and lower out-of-pocket costs), you must enroll in a plan in the Silver metal tier to get these extra savings.
See how much you could save by using our Plan Comparison and Savings Tool to compare plans and get a quick quote.
Is there a deadline to enroll in coverage and receive these new financial benefits?
Yes, there is. If you are eligible for coverage through HealthSource RI, you have until August 15th, 2021 to enroll. This additional time is available due to the public health emergency caused by COVID-19. Your coverage will begin the first of the month following your complete enrollment. To enroll, call us at 1-855-840-4774 and speak with one of our Enrollment Specialists. We’re available Monday – Friday, from 8am – 6pm.
Please note: you can enroll or change plans any time of the year if you experience a life event that qualifies for a Special Enrollment Period. In most cases, you have up to 60 days from the qualifying life event to enroll in coverage.
I’m already enrolled in health coverage through HealthSource RI. Do I need to do anything to get this new financial help?
You may. Please pay close attention to any mailed notices and emails that you receive from HealthSource RI, as these communications will include any next steps you need to take. In most cases, this additional financial assistance has been automatically applied to customers’ accounts. If you’re not sure if you received this new financial assistance, please contact us.
NOTE: If you are enrolled in health coverage through HealthSource RI but opted out of receiving financial help or were not previously eligible to receive financial help, you will need to take action to find out what you may be eligible for under the ARP. Call us at 1-855-840-4774 to ensure your income, family size, and other account information are up-to-date. Our Enrollment Specialists are available Monday to Friday 8am – 6pm and can walk you through what options are available to you.
How long will I see a lower monthly bill due to the ARP?
Most HealthSource RI customers will see lower monthly coverage costs for all of 2021 and all of 2022. Under ARP, your new financial help can start on the date your coverage through HealthSource RI begins. Enroll today if you haven’t already!
Customers who have received at least one week of unemployment benefits (UI) in 2021 are eligible to receive the maximum amount of financial help in the form of Advance Premium Tax Credits (APTCs) as well as a $0 deductible plan for all of 2021. This new assistance for UI recipients is set to expire on December 31st, 2021.
If I’m uninsured, how can I find out what I qualify for?
You can compare plans and get a quick quote using our Plan Comparison and Savings Tool. You can also call us at 1-855-840-4774, from Monday – Friday 8am – 6pm to compare plans and see what financial help you may qualify for. Our Enrollment Specialist will be able to help you apply for coverage.
My tax credits have increased due to the ARP. Can I change health coverage plans?
Yes, you can. If you are eligible for an increase in financial help and would like to change your health coverage plan, call us at 1-855-840-4774 and our Enrollment Specialists will work with you to find the best plan for your health needs and budget. You have until August 15th, 2021 to make this change.
NOTE: If you have already spent money towards your deductible or out-of-pocket expenses this year, this money can follow you to your new plan if you stay with the same insurance company. Our Enrollment Specialists can assist you with this process and will let you know if you must also contact your insurance company.
Will the ARP affect how much I spend on health coverage?
The American Rescue Plan Act (ARP) lowers monthly health coverage costs for most Rhode Islanders who are already enrolled in health coverage through HealthSource RI. It also makes additional assistance available for Rhode Islanders who received at least one week of unemployment benefits in 2021. Many HealthSource RI customers who previously did not qualify for financial help will now qualify.
If you are wondering what financial assistance you may qualify for, call us at 1-855-840-4774 or use our Plan Comparison and Savings Tool to get a quick quote.
What if my income changes while the American Rescue Plan is in effect?
If your income goes down, you may qualify for even lower monthly coverage costs. If your income goes up, your monthly coverage cost may increase. The ARP ensures your health coverage costs do not exceed more than 8.5% of your annual household income.
The best way to make sure you are getting the correct amount of financial assistance is to keep HSRI informed of any changes to your account information throughout the year. This includes your family size and income. To update your information, call us at 1-855-840-4774.
What if I already purchased a plan directly from a health insurance company, not through HealthSource RI?
This new financial help is only available through HealthSource RI. You could save hundreds of dollars per month if you switch to coverage through HealthSource RI. Call us at 1-855-840-4774 and our Enrollment Specialists will help you determine what your options are.
NOTE: If your employer, or your spouse’s employer, offers coverage, you may be eligible to enroll in coverage through HealthSource RI. However you may not be eligible to receive financial help to lower your monthly coverage costs. Please note that if your employer-sponsored coverage costs more than 9.83% of your household income, you may be eligible to enroll in coverage through HealthSource RI with financial help. This does not exclude you from no-cost coverage through Medicaid if you qualify. Please contact us if you have questions about what you are eligible for.
This all sounds great, but am I eligible to enroll in coverage through HealthSource RI?
You are eligible to enroll in health coverage through HealthSource RI if you meet all of the following conditions:
- Currently live in Rhode Island
- Are a U.S. citizen or lawfully present immigrant (asylee, refugee, green card holder). Non-immigrant individuals with a worker visa (H1, H-2A, H-2B), student visas, U-visa, T-visa and other visas are eligible to enroll in coverage.
- Not currently incarcerated
If you are eligible to enroll in coverage through HealthSource RI, you may qualify for financial help in the form of Advance Premium Tax Credits (APTCs) and Cost Sharing Reductions (CSRs). Financial help is based on your family size and income. If you still have questions about your eligibility, call us at 1-855-840-4774 or use our live web chat.
If you have Medicare coverage, you’re not eligible for financial help through HealthSource RI. If you have Medicaid coverage but would like to opt out of Medicaid, you are able to enroll in coverage through HealthSource RI, but you will not be eligible to receive financial help.
I’m currently enrolled in a Qualified Health Plan (QHP) coverage through HealthSource RI and have not been receiving financial help. Now that I’m eligible to receive financial help, will I also receive a credit or financial assistance for all the months I previously had QHP coverage?
If you are enrolled in health coverage through HealthSource RI but opted out of receiving financial help, or were not eligible to receive financial help, you will need to take action to get the financial help that you may now be eligible for. Call us at 1-855-840-4774 to ensure your income, family size, and other account information are up-to-date. Our Enrollment Specialists are available Monday to Friday 8am – 6pm and can walk you through what options are available to you.
Every year when you file your federal taxes, you can be evaluated for premium tax credit eligibility for all months you were actively enrolled into a Qualified Health Plan (QHP) through HSRI. This can mean, that if it’s determined that you qualified for more tax credits than you received in 2021, you may receive a tax refund for the additional amount. HSRI will be communicating more about this as tax filing season approaches.
I’d still like to talk to someone about these changes. How do I contact you?
We’re here to help! If you have questions about enrolling in coverage or about changes due to the American Rescue Plan, please call us at 1-855-840-4774. We’re available Monday – Friday, from 8am – 6pm.
I’m not enrolled in coverage through HealthSource RI because when I applied, I didn’t qualify for financial help. Will I qualify for financial help now?
Your eligibility to receive financial help depends on many factors including your income, family size, and how much your plan costs. The ARP ensures your health coverage costs do not exceed more than 8.5% of your annual household income.
For example, thanks to the ARP, an eligible individual aged 60 with an income of $60,000 now qualifies for $316/month in financial help. Before the ARP was signed into federal law, this individual’s income made them ineligible to receive financial help.
See how much you could save by using our Plan Comparison and Savings Tool to compare plans and get a quick quote.
What if my employer, or spouse’s employer, offers health coverage? Am I eligible to get these benefits?
If your employer, or your spouse’s employer, offers coverage, you may be eligible to enroll in coverage through HealthSource RI. However you may not be eligible to receive financial help to lower your monthly coverage costs. Please note that if your employer-sponsored coverage costs more than 9.83% of your household income, you may be eligible to enroll in coverage through HealthSource RI with financial help. This does not exclude you from no-cost coverage through Medicaid if you qualify. Please contact us if you have questions about what you are eligible for.
What if I or my spouse received unemployment benefits in 2021? Is additional assistance available?
If the primary tax filer or their spouse has qualified for or received Unemployment Insurance benefits for at least one week in 2021, the household may qualify for the maximum amount of financial help/ Advance Premium Tax Credits (APTCs) available as well as a $0 deductible coverage plan. Having a $0 deductible means that for most covered medical care, you will be responsible to pay for less out-of-pocket costs before your health plan begins to help pay for services.
If you are already a HealthSource RI customer and you have reported your, or your spouse’s, unemployment insurance to HealthSource RI, you should have received emails or postal mail in the month of June 2021 with more information about this additional financial help.
This additional financial help for Rhode Islanders who received at least one week of unemployment insurance in 2021 was first reflected in July 2021 invoices for August 2021 coverage for accounts that could be automatically updated. If you had coverage through HSRI before July, you may be able to claim any remaining part of your credit for earlier months in 2021 when you file your 2021 taxes.
HealthSource RI customers who have a change in situation, such as gaining access to other affordable coverage, may no longer be eligible to receive financial help, and must update their HealthSource RI account within 30 days of the change to avoid having to repay tax credits next year.
If you are already a HealthSource RI customer and you have not reported your, or your spouse’s, unemployment insurance to HealthSource RI, call us at 1-855-840-4774 as soon as possible to update your account information and ensure you’re receiving the correct amount of financial help.
If you have questions on this, call us at 1-855-840-4774 as soon as possible.
What if I’ve been receiving unemployment in 2021 but forgot to report it to HealthSource? Does this change my financial help?
It’s important for you to keep your account information, including income, unemployment benefits, and family size up-to-date to ensure you are receiving the correct amount of financial help.
To report any unemployment income you received in 2021, call us at 1-855-840-4774 and our Enrollment Specialists will help you update your account and determine what financial help you are eligible for. Additional assistance is available for Rhode Islanders who received unemployment benefits for at least one week during 2021.
What if I have health insurance through COBRA?
Thanks to the ARP, individuals enrolled in COBRA coverage will receive financial help to cover 100% of the cost of coverage from April 1, 2021, through Sept. 30, 2021. This benefit is available for individuals who are currently eligible for COBRA. Click here to learn more
When this COBRA assistance ends, you have 60 days to enroll in coverage through HealthSource RI. Click here to learn about our Special Enrollment Period.
If you didn’t choose to enroll in COBRA coverage, you may also apply for coverage through HealthSource RI. Get started at HealthSourceRI.com/Calculator.
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