American Rescue Plan Explained

by Angie M

Health insurance potentially means free health insurance for you. 

Huge changes in 2020, big changes for 2021 and 2022.

I got an explanation of all four features. 

It’s unbelievable the amount of health insurance benefits that are part of the new stimulus.


I’m hearing about it and everyone is talking about the new stimulus plan. The 1400-hour payment out includes more people, but the income limits of change are talking about the big change with the child tax credit. We got an article about that.

 How that could start coming to you monthly even a 10,200 of unemployment that’s not federally tax-free. Now pushing the text of right now and those are the big things that are being talked about within the stimulus plan however, and here’s a  break down into four different areas where the cobra, that’s one of them and then whether you’re on, the marketplace Obamacare whatever you want to call it if you’re getting your insurance through there, explained all four of those right now.


 If you’re on COBRA, that means that you were on an employer provided plan and then you either left work or work-related you were downsized whatever, and you chose to keep or continue your benefits your group health insurance for up to 18 months. 

That is the eye-opener is while you’re working you’re likely paying a little for your health insurance, something coming off every paycheck of every month something like that, but then your employer is paying as well.

 When you switch to COBRA your employer stops paying – you get to stay on your health insurance, but you have to pay the full value. Typically with an additional 2% cost and that’s an eye-opener at a time when you lose that income. 


So within the American Rescue Plan, ARPA, there’s a huge subsidy for Cobra; basically they look add well while you’re working you’re not having to pay the full health insurance rate. Your employer paying for some of its subsidy is what they’re looking at it as so if you’re on COBRA. 

Right now from April until the end of September your Cobra will be fully subsidized from the government debt. It’s unbelievable and for many people amounts to $5,000 to 10,000 dollars of benefit directly to you because of this.


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