Member BenefitsCost Savings
Jan 1, 2025

Increased ACA subsidies mean Blue KC is worth a closer look

You may now be eligible for lower premiums and out-of-pocket costs. The federal government is continuing to broaden eligibility for subsidies under the American Rescue Plan (ARP) through 2025, giving Blue KC members lower premiums and out-of-pocket costs. 

The bottom line: Blue KC plans are now even more affordable.

American Rescue Plan

The American Rescue Plan includes Affordable Care Act (ACA) enhanced tax credit eligibility that will improve marketplace access and affordability. The new law lowers premiums for most people who currently have a Marketplace health plan and provides financial assistance to consumers who previously did not qualify for premium tax credits.

Members participating in Marketplace coverage are able to experience these increased savings and lower costs. Premiums after these new savings have decreased, on average, by $50 per person per month or by $85 per policy per month, according to Centers for Medicare & Medicaid Services (CMS).

There are two ways you can receive financial assistance:

Subsidies

Also known as advance premium tax credits (APTC), subsidies work on a sliding scale. They limit the amount you pay in monthly premiums to a percentage of your annual income. Under ARP, ACA marketplace premium subsidies are substantially enhanced for people at every income level and, for the first time, are offered to those with income above four times the Federal Poverty Level (FPL). To receive financial aid, you must purchase an ACA Qualified Health Plan.

Cost-Sharing Reductions

You’ll also find out if your income qualifies for extra savings known as “cost-sharing reductions.” If it does, you can save money a second way: by paying less out of pocket each time you get medical services.

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