The New York State of Health (NYSOH) and the American Rescue Plan (ARP) FAQs
On March 11, 2021, President Biden announced the passing of the American Rescue Plan Act of 2021. This law provides relief to address the continued impact of COVID-19.
While this law addresses many industries, let’s look at how it impacts the Affordable Care Act (ACA), more specifically the New York State of Health (NYSOH). Here are ways you may benefit from the American Rescue Plan Act (ARPA).
Are you currently receiving a tax credit through the New York State of Health (NYSOH)?
If you are currently receiving financial assistance, you are now eligible for higher tax credits. You will receive a letter with your new tax credit amount in early April. In June, the New York State of health will automatically apply the higher credit without the need to act.
Were you deemed ineligible for a tax credit through the New York State of Health (NYSOH) because your income was too high?
If you are not currently enrolled through NYSOH, individuals and families with higher incomes are now eligible for tax credits. This assistance begins in June of 2021.
Do you pay full price through your New York State Marketplace account?
If you are enrolled with Full Pay, assistance begins in June and you will receive a letter with your new tax credit amount and directions on how to apply it.
Was your actual income higher than your projected income for 2020?
The American Rescue Plan for tax year 2020, will eliminate the repayment of the tax credits if your actual income was higher than your estimated income during that year. Talk to your tax advisor for more information.
Have you received at least one week of Unemployment Insurance in 2021?
If you have been eligible for at least one week of unemployment insurance in 2021 the American Rescue Plan states that you can sign up for health insurance that is nearly free through the NYSOH, until the end of 2021. Check back with the NYSOH website soon for an update.
When will I know what my new tax credit is?
A letter will be sent out in early April for you to update your marketplace account with instructions.
Will I have to pay back tax credits when I file my taxes for the year 2020 if I had a higher income than what I had projected?
No. There has been a tax holiday put in place to eliminate the repayment of tax credits. Many people had multiple changes with employment during the pandemic that made income projections difficult.
What should I do if I was previously over income for a tax credit?
New health insurance tax credits are available on the New York State of Health (NYSOH) Marketplace for Covid Relief. Either create an account or login on the NYSOH website to apply.
The Covid-19 pandemic has made all of us take a pause and look at our world and our lives differently. It has initiated may changes in our world on many levels, healthcare being one of them.
The American Rescue Plan, signed into law, by President Biden has slowly been implemented in stages. In June of 2021, those who were previously ineligible for an Advance Premium Tax Credit (APTC) due to income greater than 400% of the federal poverty level (FPL) can now apply to receive a tax credit!
If you already have an account on the NYS Marketplace and pay full price, you will receive a letter telling you how to access your tax credit and how to apply it. If you used a broker, navigator, or assistor to initially enroll, they should be able to help you with questions.
If you were previously ineligible due to having a higher income (greater than 400% FPL), and applied for coverage direct to the insurance carrier--you would now like to apply for a tax credit, you must enroll through the NYS of Health Marketplace website.
Simco Capital has brokers ready to help you take advantage of this Covid Relief Law! Contact us for assistance or questions with se tting up your marketplace account. We would love to help.
What if I already filed my taxes for 2020?
The IRS has stated that it will provide more information on what to do. Information can be found on IRS.gov or check with your tax advisor.
When will this all take effect?
You can update your tax credit amount in early April and the change will take effect in May. If you do not update your tax credit, in June, the NYSOH will automatically apply the higher tax credit and you will not need to act.
Will the higher tax credit be retroactive since the tax credit is based on a full year’s income?
The updated tax credit amounts will only apply going forward. Any prior months that you should have had the higher tax credit amount applied, will be reconciled at the following years tax season.
How does Unemployment Insurance effect my coverage with the NYSOH?
If you have been eligible for UI for at least one week in the year 2021, you will be able to sign up for a nearly free health plan. You cannot, however, be eligible for other health insurance.
I heard there is a subsidy for Cobra. What is that about?
Employers will get a subsidy for qualifying employees to pay 100 percent of the COBRA premiums, from April 1 to September 30, 2021. For more information, contact the employer’s HR Department.
In summary, the American Rescue Plan will offer immediate, direct relief to those impacted by COVID-19 and ensure that they have access to health coverage. No one will pay more than 8.5% of their income for health insurance. You’re welcome to call Simco at 585-750-3246, Option 2, if you need assistance with any of this or have questions.