The US Senate’s approval of the Inflation Reduction Act Sunday expands tax credits for millions of Americans who purchase individual coverage under the Affordable Care Act known as Obamacare.
These grants, which have been temporary since the passage of the American Rescue Plan Act, which increased financial aid to those already eligible to purchase health insurance under the ACA and also extended such grants to even greater Americans. the middle class that were “previously priced out of reach,” according to an analysis by the Kaiser Family Foundation.
This bill will “save millions of people an average of $800 a year in health insurance premiums,” said Chiquita Brooks-LaSure, administrator of the Centers for Medicare & Medicaid Services.
The three-year extension of the subsidies, which is expected to be approved by the Democrat-controlled US House of Representatives later this week, is good news not only for the record number of Americans purchasing coverage under the ACA, but also for health insurers. who sell it. . The tax credits would expire this year, with consequences for the benefit plans of 2023, according to health insurers.
“Every American deserves access to affordable coverage and quality care, and Senate action will continue to provide the vital support that millions of hard-working American families will need in the coming years to purchase their own health insurance,” said Matt Eyles, President and CEO of America’s Health Insurance Plans (AHIP), which includes major Obamacare providers such as Centene, CVS Health and Cigna as members.
The legislation comes as health insurers expand the markets where they sell individual Obamacare coverage to serve more Americans. These health insurers are also expanding their offer with more benefits.
Take CVS Health, which last week announced plans to expand its individual coverage sales business under the Affordable Care Act to four new states by 2023.
Other health insurers also praised the Senate’s move, saying it maintains stability for the record number of Americans purchasing coverage under the ACA.
“The Senate extension of these tax cuts will protect nearly 13 million Americans from… costs rise at a time when the price of everything from gasoline to groceries is soaring,” said Kim Keck, president and CEO of Blue Cross Blue Shield Association, which represents some of the nation’s largest providers of Obamacare coverage.
The association includes Florida Blue, Health Care Service Corp., which sells health insurance plans in five states, including Texas and Illinois, and Elevance Health, formerly known as Anthem, which sells Blue Cross and Blue Shield plans in 14 states.
“This move keeps real money in Americans’ wallets and gives them real peace of mind,” Keck said. “We look forward to the approval of the House and the President to sign this bill, and we will continue to work with Congress to make health care more affordable for everyone.”