ARPA (American Rescue Plan Act)
GovernmentThe American Rescue Plan Act of 2021 was a $1.9 trillion federal stimulus package that included enhanced premium tax credits for health insurance purchased through ACA marketplaces. These enhanced subsidies removed the 400% FPL income cap and capped premiums at 8.5% of income. The ARPA enhancements were extended through the Inflation Reduction Act until December 31, 2025, after which they expired.
More Government Terms
ACA
Federal law expanding health insurance and creating online marketplaces where individuals shop for coverage. Provides premium tax credits and cost-sharing reductions based on income, prohibits denial for pre-existing conditions.
CHIP
Provides low-cost coverage to children in families earning too much for Medicaid but unable to afford private insurance. Some states also cover pregnant women.
Medicaid
Joint federal-state program providing free or low-cost coverage for low-income individuals, families with children, pregnant women, the elderly, and people with disabilities. Each state runs its own program within federal guidelines.
Medicare
Federal health insurance for people 65 and older, plus certain younger individuals with disabilities or specific conditions. Medicare divides into parts covering different services, and beneficiaries must actively enroll.
Medicare Part A
Covers inpatient hospital stays, skilled nursing facility care (following hospitalization), hospice care, and some home health services. Most people don't pay premiums if they worked at least 10 years, though deductibles and coinsurance for extended stays apply.
Medicare Part B
Covers doctor visits, outpatient care, preventive services, durable medical equipment, lab tests, and many vaccines. Requires a monthly premium and typically includes 20% coinsurance after meeting the annual deductible.
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