Nearly 13 million Americans receive financial assistance paying for their Affordable Care Act (ACA) individual policies. Through the American Rescue Plan Act (ARPA) passed last year, millions of individuals and families received a nearly 60% temporary discount on their health insurance plan. The enhanced tax credits are part of the ARPA pandemic relief package, and will end in 2022 unless Congress extends this benefit.
Health insurance companies must lock in their 2023 premiums by August of this year. If Congress does not act before their August recess, health insurers will likely need to adjust their 2023 premiums higher due to the uncertainty of the temporary enhanced tax credits.
It is important to note that if the temporary enhanced tax credits are not extended, subsidies will simply revert back to where they were pre-pandemic.
In 2021 the ACA saw its largest increase in those enrolled, based solely on the fact that due to the temporary increase in subsidies, millions were able to obtain coverage at zero cost.