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You are here: Home / News / What New Law Means for ACA Subsidies

What New Law Means for ACA Subsidies

August 17, 2022 by NDNRC

Yesterday, President Biden signed the Inflation Reduction Act, and one of the healthcare provisions in the law aims to enhance subsidies for those who are buying their own health coverage through Marketplace plans. A policy watch from the Kaiser Family Foundation highlights five important things to know about the renewal (a three-year extension – until 2025). The IRA will avoid steep increases in premium payments, estimated at almost $700 extra per year. It will also prevent enrollees from having two kinds of premium increases at the same time by not having an increase due to the loss of subsidies plus a typical annual increase in premiums. Additionally, when the public health emergency ends, the IRA will allow those who are losing Medicaid coverage to find plans that have a monthly near-zero premium. It is expected that millions of people will enroll in ACA Marketplace plans according to a cost breakdown from the Congressional Budget Office.

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