Photo by Towfiqu barbhuiya from Pexels
How will the subsidy expiration in 2023 affect you? During the recent Open Enrollment Period, a record-breaking 14.5 million people signed up for health insurance coverage through federal Marketplace and State-based Marketplaces.
ARPA (American Rescue Plan Act) increased Affordable Care Act (ACA) premium subsidies and extended eligibility to all income brackets. Between January 2021 and January 2022, individual market enrollment rose by 21 percent. Many of these new enrollments benefited from lower premiums, and more than 90% of people who signed up via healthcare.gov received some form of financial assistance.
Who will be affected by the subsidy expiration?
According to a recent Assistant Secretary for Planning and Evaluation report, if the ARP’s premium tax credit provisions do not extend beyond 2022, an estimated 3.4 million Americans currently insured in the individual market would lose coverage and become uninsured. Kaiser Family Foundation determined premiums would more than double for many.
“Proposed health insurance premium rates reflect many factors, which can include the effects of legislative and regulatory changes,” Cori Uccello, Academy Senior Health Fellow, said in a press release. Some states could see premium increases of 86 percent or more if the subsidies end. Wyoming and South Dakota had a very high potential increase, with projected premiums rising as much as 132 percent and 95 percent, respectively.
If Congress extends the temporary subsidies, premium payments in 2023 will hold mostly flat for Marketplace enrollees since the premium tax credits shelter enrollees from increases in the underlying premium. However, if these extra subsidies expire, out-of-pocket premium payments will rise across the board next year for almost all 13 million subsidized enrollees.
It is a good idea to discuss your current plan with your agent and ensure everything will be okay with your plan.
Have Health Insurance Questions?
We hope that this information on the subsidy expiration is helpful for you. Click here to learn about the power of Vitamin C!
Insurance is oftentimes overwhelming, and we want to shed light on the industry by answering your questions. Comment below and your question may be the topic of our next post!
If you liked this article, share it with your friends!
Empower Brokerage wants to help you find the insurance coverage you need and help you save money getting it. Stay on top of your health and give us a call at (844) 410-1320.
Get affordable health insurance quotes by clicking here.
See our other websites: