17 Jul Legislation Extends Affordable Care Act Medical Coverages For 3 Years

August 8, 2022

The United States Senate has approved the Inflation Reduction Act, a bill which will have direct effect on the 2023 costs of major medical insurance for some clients of Hurley Benefit Services LLC. The House of Representatives is expected to easily approve the bill later this week. To assist our customers with multiple health insurance options, Hurley Benefits Services offers major medical coverage through the Affordable Care Act (ACA) exchange. To be eligible for ACA customers must meet certain criteria, and health insurance must not be offered by their employer.

The Inflation Reduction Act addresses several pressing issues to include climate change, and ACA healthcare subsidies. Once approved by the House of Representatives and signed into law by the President the current marketplace subsidy structure will remain in place through the end of 2025, instead of expiring at the end of 2022. What does this mean to our ACA customers?

1. The subsides will continue to be larger than they were pre-covid, making coverages much more affordable. The size of subsidies vary by income, age, and area lived in. The percentage of income and the correlating subsidy is on a sliding scale, and the current income scale used determines the amount paid toward premiums, and limits premiums to no more than the 8.5% of one’s total annual income, and most eligible citizens making less than 4 times the poverty line having $0 premium coverage options available. The Inflation Reduction Act would lock in that same scale through the end of 2025.
   
   
2. The extension of current ACA tax subsidy will avoid the Subsidy Cliff. The fear among health brokers was that the subsidies would cease at the end of 2022. Making premiums soar up to 400% over current rates. This legislation avoids the subsidy cliff for the next three years.
   
   
3. Premiums will likely fluctuate higher in 2023. However, the subsidies should continue to make coverage affordable and valuable. In 2022, about 89% of marketplace enrollees receive premium subsidies.

Open enrollment for 2023 starts on November 1, 2022. It is important to carefully consider all healthcare options during open enrollment. At Hurley Benefit Services LLC we offer a variety of health care plans both inside and outside of the ACA exchange. Let us help guide you through the enrollment process.