 TITLE: How Unemployment Benefits Are Changing in 2021 CONTENT: You May Qualify for Discounted or Free Health Coverage\n------------------------------------------------------\nIf you're unemployed, you may be able to get health coverage from Medicaid, an Affordable Care Act (ACA) Marketplace or a health care provider. Another option may be to continue the coverage you had at work through Consolidated Omnibus Budget Reconciliation Act (COBRA).\nThe ARPA makes several significant changes to health insurance costs:\n*   **May expand Medicaid** through new state incentives depending on where you live.\n*   **Increases the premium tax credit (PTC).** The PTC, a refundable tax credit for eligible families using an ACA Marketplace plan, will be increased and expanded through 2022, which could lower your monthly premium. Kaiser Family Foundation has an updated calculator you can use to estimate your subsidy.\n*   **Offers the PTC to unemployed individuals.** If you're eligible for unemployment during 2021, you can now receive the PTC as if your income is 133% of the federal poverty line—the highest subsidy available. The change is particularly important for people living in states that didn't expand Medicaid, creating a coverage gap where residents couldn't qualify for the PTC or Medicaid.\n*   **Subsidizes COBRA premiums.** If you involuntarily left your job, the federal government may pay the entire cost for your continued COBRA coverage from April 1 to September 30, 2021. The benefit can apply if you're currently enrolled in COBRA; you also have a chance to enroll now, even if you previously declined coverage. The subsidy ends before September 30 if you get another job with employer-provided health care or use up your 18 months of COBRA coverage.\nLearn more about getting help paying for medical bills.  \nHow to File for Unemployment in 2021\n------------------------------------\nAs was previously the case, you'll continue to file for unemployment through the state where you worked. The filing process hasn't changed for many people, although some states are implementing minor changes to help prevent fraud or increase efficiency.\nGenerally, you can't collect unemployment unless you're out of work for no fault of your own (in other words, you didn't quit), and you earned enough wages during a \"base period\" before filing. States may have additional requirements as well. However, the pandemic has led to several changes, so you'll want to check with your state's unemployment agency to see if you can qualify.\nFor example, you may be eligible for PUA benefits even if you usually wouldn't have enough work history to qualify for unemployment in your state. Or, you may qualify for unemployment if you had to quit your job or stay home to care for your child because of the pandemic.\nYou can use the unemployment benefits finder tool to find links to general information, details on how to apply and relevant coronavirus updates for your state.  \nWill Collecting Unemployment Hurt Your Credit?\n----------------------------------------------\nWhile you might be more likely to fall behind on bills if you're out of work, which could hurt your credit, collecting unemployment doesn't directly impact your credit.\nYou may also see current or past employers listed on your credit report if you listed them on previous credit applications. Even when that's the case, though, your income and current employment status aren't on your credit reports and don't impact your credit scores.\nCredit scores aside, it could be more difficult to qualify for a loan or credit card if you don't have a job. However, it may be possible, especially if you have good credit and another source of income.\nYou can also sign up for free credit monitoring from Experian to keep an eye on your credit. And learn about more ways to protect your credit during the pandemic. END