The Centers for Medicare & Medicaid Services (CMS) in coordination with the Internal Revenue Service (IRS) is releasing guidance to ensure consumers continue to receive the tax credits they are eligible for through their Marketplace plan. For plan years 2021 and 2022, CMS will not remove the financial help consumers enrolled through the Health Insurance Marketplace® receive to pay for their health coverage if they did not file tax returns and reconcile a previous year’s premium tax credit. However, consumers are generally still required to file and reconcile premium tax credits with the IRS for their federal income tax returns, with the exception of consumers who received excess premium tax credits in plan year 2020.
Today’s announcement is being issued in response to the impact of the COVID-19 public health emergency (PHE) on the processing of federal income tax returns and changes concerning tax filing and reconciliation requirements for tax year 2020 announced by IRS in response to the American Rescue Plan Act of 2021, to limit the removal of tax credits for consumers who would otherwise be eligible. This guidance is applicable for Federally-facilitated Marketplaces that use the HealthCare.gov platform as well as a state option to State-based Marketplaces that operate their own eligibility and enrollment platforms.
To view the Frequently Asked Questions (FAQs), visit: https://www.cms.gov/CCIIO/Resources/Regulations-and-Guidance/FTR-flexibilities-2021-and-2022.pdf (PDF)
For more information about the Health Insurance Marketplace®, visit: https://www.healthcare.gov/quick-guide/getting-marketplace-health-insurance/
Health Insurance Marketplace® is a registered service mark of the U.S. Department of Health and Human Services
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Contact: CMS Media Relations
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