Last week we announced the passage of the American Rescue Plan Act of 2021. The act includes important health care insurance provisions that will expand benefits available to Minnesota through MNsure.

One key change is a two-year enhancement to premium tax credits (PTCs) available to eligible individuals who qualify to purchase coverage through MNsure. The enhancements both increase the amount of PTCs available at all income levels and eliminate the 400 percent earnings of the federal poverty level (FPL). 

What the act means for Minnesotans:

• Those enrolled on the exchange and receiving tax credits will see increased savings.
• Those enrolled on the exchange but not currently receiving tax credits might become eligible to receive them.
• Those purchasing coverage directly from an insurance company rather than MNsure can cancel their policy and move to MNsure where they can receive tax credits.
• Higher subsidies might make premiums more affordable for those who are uninsured.

Consumers must be enrolled in a plan through MNsure to qualify for the enhanced tax credits.

Kaiser Family Foundation has created a calculator to estimate eligibility for subsidies under the new American Rescue Plan Act. This is just an estimate but can help inform consumer decisions about enrolling in coverage.

MNsure will be sharing more details as soon as possible on an implementation timeline and additional information for assisters and consumers.