Posted on May 3, 2022 by Steve Shorr — 1 Comment ↓

Advance Payments of the Premium Tax Credit APTC
ARPA American Rescue Plan Act

How to get & qualify for Subsidies

2022 Instant Health Insurance Proposals ARPA Stimulus

Introduction to Subsidies – Premium Tax Credit

To make this all “simple” just use our quote engine and/or watch our video on using the quote engine.

what is MAGI Income or does this or that count as income.

How do you get the premium tax credit?

Check out our quote engine, to get a preliminary indication of the amount of subsidies you’ll qualify for. There is no extra charge for our services,

In a lot of ways subsidies are hocus pocus smoke & mirrors as you have to file Form 8962, Premium Tax Credit, with your tax return at the end of the year. So, at the end of the year if you make too much $$$ you might have to give it back. If you make less, you get money back on your taxes.

Failing to file your tax return will prevent you from receiving advance credit payments in future years and can cause MAJOR PROBLEMS and coverage CANCELLATION!

The premium tax credit is refundable so taxpayers who have little or no income tax liability can still benefit. The credit also can be paid in advance to a taxpayer’s insurance company to help cover the cost of premiums. ^{IRS Website on “The Basics“}

Links & Resources

2022 Instant Health Insurance Proposals ARPA Stimulus

What’s on this page?

Section 1.36 B exact legal definition of subsidy calculation
Simple calculator
COVID 19 ARPA
MAGI Definition
Native Americans
Report Changes
Inflation Reduction Act

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Calculate your Covered CA MAGI Income

take #Line8b 11 Adjusted Gross income then add line 2a, 6a & 8 (Foreign Income)

1040 IRS Annual Tax Form
- Schedule 1 Additional Income & Adjustments to Lower your MAGI Income
  - IRA Retirement
  - Health Savings Account
- Calculate - Estimate your Taxes
  - Estimate next years MAGI Income?
- Steve's Video on MAGI Income
  - Covered CA's Video
- Get instant quotes, subsidy calculation and coverages
- NO ASSET TEST for MAGI based subsidies in Covered CA or MAGI Medi Cal Qualification. VIDEO
  - Nor is there a lien against your estate for Covered CA or MAGI Medi Cal

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Federal Poverty Level &
Program Chart

Medi-Cal? Covered CA Subsidies? Enhanced Silver?

Steve Shorr VIDEO on subsidies
Health Care Reform

CMS VIDEO explains the advance premium tax credit and the different ways in which you can apply it to lower the cost of insurance for you and your family.

#COVID19 Bill

The American Rescue Plan Act ARPA

2021 Federal Stimulus Package
March 2021

VIDEO Introduction to ARPA by Steve

ARPA subsidies have been extended through 2025 ^Kff.org * ^{Congress.Gov Section 12001} * under the Inflation Reduction Act signed by President Biden on 8.17.2022
Covered California’s Insurance Deals Range From ‘No-Brainer’ to Sticker Shock
The Coronavirus bill represents the biggest expansion of Federal Help – Subsidies, since ACA/Health Reform/Obamacare started in 2010!
Use our Quote Subsidy Calculator Engine, to see how ARPA works for you.
There are way more subsidies and there is no upper income limit chart (FPL) for 2021 and 2022.

ARPA Provides:

Those enrolled in Covered California health plans will not have to pay more than 8.5% of their household income for the second lowest cost silver plan – Get Quotes
If you are not in Covered CA, there is a special enrollment period to apply. If you stay with the same insurance company, your deductibles & co pays will transfer over!
Any person in 2021 who received unemployment insurance for one week or more, and their total income qualifies for coverage through Covered California, will receive federal premium tax credit available for 138% of FPL Silver 94? for the duration of the Public Health Emergency in 2021.
In California, individuals making between 138 percent and 150 percent of the federal poverty level — between $17,776 and $19,140 per year — will see their already-low premiums eliminated. ^{San Diego Union} * ^{Covered CA FAQ for Brokers} *
100% federal premium subsidy for COBRA coverage ^{Blue Shield} *
Despite What the White House Says, Obamacare Is Deeply Troubled ^{PRI Center for Economics & Innovation}
Get quotes to see how ARPA would work for you.
ARPA is funded to the tune of $34 Billion for only two years and would change the formulas for health insurance tax credits to make them more generous for most people, and also allow a wider number of individuals to qualify.
ARPA follows President Biden’s strategy of getting all Americans covered. ^{Modern Health Care 3.8.2021} * ^NPR *
Covered CA will automatically check if clients get more subsidies. BUT! your consent to allow Covered CA to check your finances in the Federal Hub, etc. must be up to date. Here’s their quick guide on how to do that.

ARPA is comprehensive and there are several provisions that we are watching closely that would affect how people pay for their health insurance coverage:
Removing the cap on subsidies for people earning more than 400% [600% in CA] of the Federal Poverty Level (FPL) –Currently those with a Modified Adjusted Gross Income (MAGI) of more than 400% of the FPL are not generally eligible for Advance Premium Tax Credits (APTC). Additionally, there is legislation that would make the removal of the 400% cap permanent.²
Lower the maximum a person has to pay for the Benchmark Plan from 9.83% of MAGI to 8.5% of MAGI – This provision would drop the amount the insured person has to pay for insurance from 9.83% of his MAGI to 8.5%.
Provide no-cost Silver Plans for people receiving unemployment insurance – Americans on unemployment insurance during 2021 would receive the Benchmark Silver Plan in their market for a $0 premium contribution while they are receiving unemployment insurance.⁴
APRA COVID Stimulus bill will also pay your COBRA and Cal COBRA premium.
All ages will be affected, but this bill will have the greatest impact on near-seniors, or those aged 55-64 because of the cost of their ACA coverage. ^{Stephens Mathews Email 3.11.2021} *

Resources & Links

Premium Problems if ARPA isn’t renewed

July 12, 2022 VIDEO will ARPA be renewed for January 2022?

BIG problems with premiums for 2023 if ARPA isn’t continued! Learn More Fact Sheet NASHP
- Covered CA Summaries – Generally simpler, plain English and better summary
  - Americans Brace for Higher Health Insurance Costs if the American Rescue Plan is Allowed to Expire
    - Press Release
    - Covered California Announces 2023 Plan Rates: Lower Than National Average Amid Uncertain Future of American Rescue Plan Benefits
- newsweek.com/cut-health-not-inflation-opinion
- american progress.org/11-ways-the-inflation-reduction-act-will-help
- route-fifty.com/why-senate-deal-could-keep-millions-losing-health-insurance
- Millions to Lose Coverage if American Rescue Plan PTCs Expire
- Five Things to Know about the Possible Renewal of Extra Affordable Care Act Subsidies
- Projected Coverage and Subsidy Impacts If the American Rescue Plan’s Marketplace Provisions
  Sunset in 2023
- Democrats are feeling increased pressure to extend health care subsidies approved during the pandemic
- Delays Extending The American Rescue Plan’s Health Insurance Subsidies Will Raise Premiums And Reduce Coverage
- Reducing Premiums Can Lead to Improved Insurance Coverage Considering the fact that the majority of low-income consumers owe small premiums, researchers suggested that lowering premiums by a few dollars monthly could improve insurance coverage.
- Falling off the Subsidy Cliff: How ACA Premiums Would Change for People Losing Rescue Plan Subsidies
- Costs will increase significantly for nearly 150,000 Californians if Congress lets federal subsidies expire LA Times
- Zero-dollar premiums could improve coverage on ACA exchanges compared to those paying small amount
- health payer intelligence.com/hhs-cms-extend-american-rescue-plan-funding-for-hcbs-another-year
  - I don’t know if or how this might apply to Covered CA subsidies.
- There might – will be big increases in 2022 when subsidies are lost, especially the unemployment benefit.
- Covered California Leader Urges Renewal of Enhanced Federal Aid for Health Premiums CA Health Line.org
- Pressure to extend subsidies ARPA Fierce Health News 5.24.2022
- Healthcare spending could drop $11.4B next year if ACA premium subsidies expire Health Care Dive.com 5.26.2022

Legislation to renew ARPA

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How do the Subsidies under ARPA compare to ACA?

California subsidies to 600%?

Impact of Key Provisions of the American Rescue Plan Act of 2021 COVID-19 Relief on Marketplace Premiums

HR 117 ARPA Premium Tax Credit

TAS Tax Tips: American Rescue Plan Act of 2021 individual tax changes summary by year

cnn.com/trump-health-care-complicated

Trump CMS New Rules To Weaken Obamacare Health Plans

youtube.com/irs videos

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- 17 Reasons to appoint us as your agent - broker
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VIDEO on ARPA Stimulus and more Covered CA Subsidies
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Technical Links for

Premium Tax #Credits §136 B

CFR 136 B 3 – How is Tax Credit #Calculated

Kaiser Foundation Subsidy Explanation

§ 1.36B-1 Premium tax credit definitions.
§ 1.36B-2 Eligibility for premium tax credit.
§ 1.36B-3 Computing the premium assistance credit amount.
§ 1.36B-4 Reconciling the premium tax credit with advance credit payments.
§ 1.36B-5 Information reporting by Exchanges.
§ 1.36B-6 Minimum value.
CFR 155.305 HTML Eligibility Standards
26 CFR 1 & 602
§1.36b-1 Premium tax credit definitions
law.cornell.edu/uscode 1396a
final regulations,
proposed regulations relating to minimum value of eligible sponsored plans
Notice 2013-41, whether or when individuals are considered eligible for coverage under certain Medicaid, Medicare, CHIP, TRICARE, student health or state high-risk pool programs MR. Mip.
final regulations on the reporting requirements for Marketplaces.
HR 3590 Section 1001 HR 4872
Code of Federal Regulations §1.36b-2Eligibility for premium tax credit.

#Native Americans Heath Insurance subsidies, etc

No Health Care Expenses, Depending on Income

Federally recognized American Indians and Alaska Natives who earn less than 300 percent of the federal poverty level (see chart) will not have to pay certain out-of-pocket medical costs, such as copays and deductibles, if they purchase health insurance coverage through Covered California, no extra charge for use to help you. Get Quote

No Cost-Sharing for Covered Services Provided by an American Indian Health Provider or Clinic, Regardless of Income

There are no copays or deductibles for any covered services received directly through the federal Indian Health Service, tribes, tribal organizations or urban American Indian organizations.

Ability to Buy Insurance Anytime

American Indians and Alaska Natives can buy or change health insurance plans once a month through Covered California and are not subject to open-enrollment periods. Our webpage on special enrollment

Exemption from the Shared Responsibility Payment

All members of federally recognized tribes and all American Indians and Alaska Natives who are eligible for services through an Indian Health Service provider are eligible from an exemption from the shared responsibility payment (the tax penalty consumers pay if they do not have minimum essential health coverage).

more exemption information.

Our webpage on CA Penalty *

Exemptions from CA Mandate Penalty

covered ca.com/documents-to-confirm-eligibility/american-indian-or-alaskan-native

Additional information that may be of interest to American Indians and Alaska Natives is available below: