Gov. Phil Murphy recently announced new state and federal financial help that will drastically lower health insurance costs for hundreds of thousands of New Jersey residents and will be available at Get Covered New Jersey, the state's official health insurance marketplace. The additional help launched April 15.
Nine out of 10 residents enrolling on the marketplace will qualify for financial help, according to officials at My Benefit Advisor, which is a part of USI Affinity, the administrator of the New Jersey State Bar Association’s benefit insurance program. This is the largest coverage expansion since the Affordable Care Act passed in 2010. The eligibility enhancements under this law allow for money to be put back in the hands of people and provide potentially life-altering coverage and will provide relief to many New Jersey residents who may be struggling during the pandemic and its economic repercussions. What’s included in American Rescue Plan Act of 2021?
The plan includes an increase in the eligibility for, and the amount of, premium tax credits for New Jersey residents at all income levels during the 2021 and 2022 plan years. Those earning more than the current cap of 400% of the federal poverty level -- about $51,000 for an individual and $104,800 for a family of four in 2021 – will be newly eligible for subsidy tax credit.
Existing consumers who update their applications by today will be able to see the new financial help as early as May 1. Get Covered New Jersey is planning to automatically update financial help for as many existing consumers as possible this summer to reduce premiums for those who have not yet taken action.
Existing and new consumers who have received unemployment compensation in 2021 are eligible for nearly free coverage this year if they otherwise qualify. Consumers will need to answer a new application question, attesting to receiving unemployment compensation in 2021, to receive this benefit. Current enrollees who update their applications, and new enrollees who submit an application, by April 30 will see the new financial help beginning May 1.
How does this play out for a real member?
Here are some projections.
- Scenario A: A 30-year-old single, nonsmoker with a $45,000 annual income. Under this new law, would qualify for $85/month in federal subsidies and up to an additional $100/month from New Jersey. Annual Savings up $2,200
- Scenario B: A 52-year-old single, nonsmoker with a $65,000 annual income. Under this new law, would qualify for $157/month in federal subsidies and up to an additional $50/month from New Jersey. Annual Savings up $2,484
- Scenario C: A family of 4: 2 - 56-year-old’s and 2 children (20, 18), nonsmoker with a $130,000 annual income. Under this new law, would qualify for $1166/month in federal subsidies and up to an additional $200/month from New Jersey. Annual Savings up $16,392
What if a member enrolled in off-exchange coverage?
Another key target audience affected by this law is those enrolled in off-exchange coverage. Individuals enrolled in individual coverage without a subsidy should check to see if they would be better buying a plan on exchange.
My Benefit Advisor and USI Affinity partner with the New Jersey State Bar Association to assist members with their insurance needs. The My Benefit Advisor team of certified specialist is available to make sure customers on the individual market are aware of these savings and to assist those who wish to make the transition and take advantage of this increase in financial assistance. Please contact My Benefit Advisor at 855-874-0267 or www.mybenefitadvisor.com/indvidual
New consumers who are uninsured or enrolled in individual coverage outside of the health insurance marketplace should be encouraged to look at the new financial help available. Even if individuals were not eligible for financial help before based on income, they may qualify now. New consumers who enroll by April 30 will have coverage start May 1, but enrollment remains open.