With American Rescue Plan Act healthcare subsidies set to expire at the end of this year, attention has turned to the question of subsidy extensions. Some 13 million people are currently subsidized due to the ARPA, which was designed to ensure Americans could access essential healthcare during the COVID-19 pandemic. As Congress debates extending the subsidies for an additional two years, a new analysis from the nonprofit organization the Kaiser Family Foundation suggests that the expiration of the subsidies could lead to huge increases in premiums for many Americans.

Though exact premiums varied between states, the analysis found that in most states, on average, premiums would be around 53% higher in 2022 without ARPA subsidies. For many enrollees, that’s a difference of thousands of dollars a year – a gap many people might find hard to make up if and when the subsidies expire. 

At the same time, baseline premiums are expected to rise by 10% in 2023, meaning the difference between a subsidized 2022 premium and an unsubsidized 2023 premium could be staggering. In one example scenario, the analysis shows that while someone making $51,521 might currently be paying around 8.5% of their income towards their premium, in 2023 they might pay as much as 24% of their salary.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

 

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2023 ALM Global, LLC. All Rights Reserved.