The American Rescue Plan & Inflation Reduction Act

Did you know that because of recent federal legislation called the American Rescue Plan (ARPA) you may qualify for premium tax credits? These health insurance tax credits may make your health plan more affordable.

As your friends and neighbors right here in Vermont, we believe it is important to notify you about ways in which you can save money — and possibly reduce your monthly premiums by thousands of dollars annually.

Through the American Rescue Plan and now the Inflation Reduction Act, more Vermonters can save a considerable amount of money by lowering their monthly health insurance premiums. If you purchased, or plan to purchase a Qualified Health Plan through Vermont Health Connect, you may be able to significantly lower your health insurance premiums. The sooner you enroll, the more you can save.

Frequently Asked Questions

During Open Enrollment, visit Vermont Health Connect to see if you and your family will qualify. Call Vermont Health Connect at (855) 899-9600 to apply or apply online. When you sign up through Vermont Health Connect, you can keep your Blue Cross VT plan with a new lower monthly premium.

If you would prefer to receive the tax credit in the form of lower monthly bills, Vermont Health Connect can provide you with that option later this year.

Tax credits (or subsidies) help lower monthly health care premiums. You can choose to receive your tax credits on a monthly basis to lower your monthly expenses or in one-lump sum when you file your taxes.

Your subsidies are based on:

  • Your total expected income for the year
  • Number of people in your household who file taxes together
  • The premium subsidy amount you receive is based on the cost of the second-lowest-cost silver plan (MVP's Plus Silver 2 HDHP). This is called the "benchmark" plan. 

Our Open Enrollment Period for Qualified Health Plans starts on November 1. This is when Vermonters can sign up for a new plan through Vermont Health Connect. If you enroll during the Open Enrollment Period, and you don't have a qualifying event, your plan changes will take effect January 1, 2025. 

You will likely qualify for additional savings. Don’t miss out! Contact Vermont Health Connect today to see how the new law affects your monthly premiums. You can call Vermont Health Connect at (855) 899-9600. 

If you buy health insurance through your employer this will not affect you. However, if you lose your job and you qualify for unemployment, the law provides coverage of COBRA premiums. Please check with your employer for more details regarding your eligibility and what this means for your COBRA coverage.

Your tax credit will be multiplied by the number of months you are enrolled through Vermont Health Connect, so it benefits you to act sooner rather than later.

You will receive a tax form listing the months you had coverage through Vermont Health Connect. You will need to use this form to claim your tax credit when you file your 2024 federal taxes.