The American Rescue Plan Act of 2021 temporarily expanded Affordable Care Act marketplace premium tax credits so that people with incomes above 400% of the federal poverty level would not have to pay more than 8.5% of their income toward marketplace health insurance.
March 11, 2021
high
temporal
The 2021 federal COVID-19 relief law included temporary changes to premium tax credit calculations for ACA marketplaces.
The baseline premium tax credits in the Affordable Care Act were originally limited to households with incomes up to 400% of the federal poverty level.
high
policy
Describes the original eligibility cutoff for premium tax credits established by the Affordable Care Act.
During the COVID-19 pandemic, temporary premium tax credits expanded eligibility above 400% of the federal poverty level, allowing middle- and higher-income households to receive subsidies.
high
policy
Temporary, pandemic-era changes increased subsidy eligibility beyond the original ACA cutoff.