As the COVID-19 pandemic continues to evolve, many individuals and families who received federal health care subsidies during the public health emergency are facing a critical deadline. The enhanced subsidies, which were introduced as part of the American Rescue Plan Act (ARPA), are set to expire at the end of 2022. Here are five key things to know about the expiring federal health care subsidies:
Temporary subsidies: The ARPA subsidies were designed to be temporary, providing financial assistance to individuals and families who purchased health insurance through the Affordable Care Act (ACA) marketplace. The subsidies were intended to help people who had lost their jobs or experienced a reduction in income due to the pandemic. With the subsidies set to expire, many individuals and families will need to reassess their health insurance options.
Impact on health insurance premiums: The expiration of the subsidies will likely lead to an increase in health insurance premiums for many people. Without the subsidies, individuals and families may face higher out-of-pocket costs, which could make health insurance unaffordable for some. This may lead to a decrease in the number of people with health insurance, potentially exacerbating existing health disparities.
Changes to eligibility: The ARPA subsidies expanded eligibility for health insurance subsidies to more people, including those who had previously been ineligible due to their income level. With the expiration of the subsidies, eligibility will revert to pre-ARPA levels, which may mean that some individuals and families will no longer qualify for financial assistance. This could lead to a loss of health insurance coverage for some people.
Options for those losing subsidies: Individuals and families who are losing their subsidies may have other options for affordable health insurance. For example, they may be eligible for Medicaid or the Children’s Health Insurance Program (CHIP), or they may be able to purchase health insurance through their employer. Additionally, some states have established their own subsidy programs to help residents afford health insurance.
Uncertainty about future subsidies: The future of the federal health care subsidies is uncertain, and it is unclear whether Congress will extend or modify the subsidies. Some lawmakers have proposed making the ARPA subsidies permanent, while others have suggested alternative solutions, such as expanding Medicaid or introducing new subsidy programs. As the deadline for the expiration of the subsidies approaches, individuals and families are advised to explore their options and prepare for potential changes to their health insurance coverage.
In conclusion, the expiration of the federal health care subsidies at the end of 2022 will have significant implications for individuals and families who have been relying on them to afford health insurance. With the potential for increased premiums, changes to eligibility, and uncertainty about future subsidies, it is essential for those affected to explore their options and plan for the future. By understanding the implications of the expiring subsidies, individuals and families can make informed decisions about their health insurance coverage and ensure that they have access to affordable, quality care.