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The American Rescue Plan Act (ARPA)

On March 11, President Biden signed the American Rescue Plan Act of 2021. What does this mean for you? You may get more savings and lower costs on your health insurance.

Saving opportunities include:

  • Lower premiums for members who receive subsidies
  • New subsidies for members with higher incomes
  • Premium help for members who are or were unemployed in 2021

Here are answers to common questions.

Through your state's Health Insurance Marketplace. Depending on your health insurance plan, you may need to take action.

MNsure Plans
You don't need to take any action. MNsure will automatically recalculate your monthly subsidy. If eligible, you will see lower monthly premiums on your May invoice from Medica. Plans
Log in to your Marketplace account and resubmit your application. If you qualify for additional savings, reselect your current plan to apply those savings.

Tip: To make sure you don't have your deductible and out-of-pocket maximum restarted, keep your same Medica plan.

Plans Directly from Medica
You'll need to complete an application for a new plan through your state’s Health Insurance Marketplace. To apply, visit the Marketplace and follow the steps for completing an application.

Start application

Start MNsure application (Minnesotans only)

May 1, 2021 - but you may need to take action for them to apply. See How do I access these savings? for more information of steps you may need to take.

Savings Start* Take Action By
May 1 Apr. 30
June 1 May 31
July 1 June 30
Aug. 1 July 31
Sept. 1 Aug 15

You can also wait until you file your 2021 taxes next year (in 2022) to get the additional premium tax credit amount.

*If you update your profile after we process are invoices you may not see the savings until the following month. Any extra payment made will apply as a credit to your next month’s premium – or you can request a refund. Here's how

We likely processed your invoice before receiving notice of your additional savings. This means the additional savings will apply to your next invoice. We recommend you still pay the Total Amount Due shown on your invoice to keep your policy active. Any extra payment made will apply as a credit to your next month's premium — or you can request a refund. Here's how

Yes. However, you must re-enroll in your same Medica plan for the cost sharing you paid to transfer. If you change plans, this amount will not transfer.

Maybe. Your subsidy amount will increase and that means the amount you owe will go down. For an estimate of the additional amount you may be eligible for check out the KFF Health Insurance Marketplace Calculator. Only the Marketplace will be able to determine the actual amount of your premium subsidy.

Maybe. It's worth checking to see. The American Rescue Plan guarantees no one will pay more than 8.5% of their household income on their health insurance premiums for the second-lowest-cost silver plan (benchmark plan) in your area.

No. Not everyone's premium will go down. If you’re already paying less than 8.5% of your household income in monthly premiums you will not see any savings. They determine eligibility by the cost of the second lowest price silver metal level plan in your county, your age, and income.

Complete and return the Policy Termination Form. Or, give us a call at the number on the back of your Medica ID card.

Download the Policy Termination Form (PDF)

You still need to pay back premiums before your new coverage will start. If in grace and you have questions please give us a call.

You'll need to contact your state's Health Insurance Marketplace. See contact information below.

Health Insurance Marketplace
Call 1-800-318-2596 (TTY: 711)

MNsure (For Minnesotans only)
Call 1-855-366-7873 (TTY: 711)

Please note: The Marketplaces are still determining how to make this happen. If you were unemployed for any week during 2021, you are encouraged to go the appropriate Marketplace early to get enhanced subsidies, and you may be eligible for more later.

We're Here to Help

Didn't find the answer you were looking for? Talk with a Health Plan Specialist.

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