Temporary subsidies could turn record ACA enrollment into coverage cliff

While ACA enrollment hit a record with 14.5 million sign-ups during the recent open enrollment period, the sustainability of that figure may largely be dictated by the Biden administration's ability to preserve subsidies that are currently temporary, according to The Washington Post

The record-low premiums that led to a 2 million enrollee increase this year was largely due to increased and expanded subsidies. Funding came from a $1.9 trillion COVID-19 aid bill in March 2021.

However, the subsidies are set to expire at the end of 2022, meaning unless the government passes a long-term plan — including President Biden's $2 trillion social spending bill, which would extend subsidies through 2025 —  premium  costs will spike at the end of the year, according to the Post

In many cases, millions of enrollees will see premiums double if subsidies are not extended, Cynthia Cox, a vice president at the Kaiser Family Foundation, told the Post.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Top 40 articles from the past 6 months