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In August of 2022, President Joe Biden signed the Inflation Reduction Act of 2022 into law. Within the act, there are many provisions, including energy, environmental, and tax provisions. The law has extended ACA subsidies for the next three years. The expanded premium tax credits were first introduced and enacted in the American Rescue Plan (ARPA) and provided expansion for clients on the Affordable Care Act (ACA) marketplace health plans. These extended ACA subsidies helped nearly 90% of the people who signed up for health coverage on the health insurance marketplace during the 2022 open enrollment period. The Inflation Reduction Act has initiated three years for expanded ACA subsidies that were to expire at the end of this year. The extension provides relief for more than 10 million Americans projected to lose part or all of their premium tax credits. Specifically, 3 million people would have lost their coverage.
The Inflation Reduction Act extends the two most significant subsidy enhancements. Nearly half of enrollees in coverage since 2020, an estimated 2 million adults, have improved affordability under these provisions.
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