In a brand new Coverage Watch, KFF analysts discover the potential impression of the expiration of the American Rescue Plan Act’s enhanced monetary assist and new eligibility for the Inexpensive Care Act’s medical health insurance Market federal subsidies. Whereas the COVID-19 reduction laws handed earlier this 12 months offers larger subsidy help by way of 2022, Democrats in Congress are presently contemplating making the short-term federal assist everlasting or extending it as a part of their deliberate funds reconciliation laws.
The authors describe what’s at stake within the present debate, from the extra prices to the federal authorities if the short-term reduction is prolonged, to premium funds and/or deductibles rising for the thousands and thousands of individuals presently receiving enhanced subsidies. The typical Market enrollee would see their premiums doubled and must pay about $800 extra if enrolled the entire 12 months. Low-income individuals, who’re 42% of Market enrollees, pay nothing or a minimal quantity in premiums presently and would see the biggest proportion improve in premium prices if the subsidies expire.
Additionally touched on are the potential political implications of the expiration of the improved subsidy help as Market enrollees would obtain their renewal notices in October, 2022, weeks earlier than the midterm congressional elections.