Congress has until the end of the year to renew subsidies through the American Rescue Plan
Health Insurance Marketplace consumers will most likely see substantial insurance cost increases at the end of the year unless Congress takes action.
Under the American Rescue Plan signed into law in March 2021, tax credits were established to help consumers pay for health insurance, but those credits expire at the end of 2022. If the credits are not renewed, HHS predicts that the number of uninsured Americans will increase significantly – up to three million people.
In addition, more than 10 million Americans will have reduced tax credits or lose them entirely. According to HHS projections, 8.9 million people will have their tax credits reduced an average of $406 per person annually, while 1.5 million will lose their subsidies entirely, amounting to $3,277 per person each year.
Subsidies provide help with premiums for nearly 90% of the 14.5 million consumers that signed up for health coverage on the Health Insurance Marketplace during the 2022 open enrollment period. Help was available to individuals with incomes around $52,000 and $106,000 for a family of four.
According to HHS, four out of five people could find plans that cost less than $10 per month on HealthCare.gov, with families seeing a savings of $67 per person per month in premiums in 2021.