State-based ACA exchanges make backup plans in case Congress fails to act on enhanced ACA subsidies

This is what happens when a temporary bandaid is used while the underlying problem is ignored. The enhanced subsidies are relied on, individuals selected higher cost plans because they received higher subsidies. No doubt the money saved was spent elsewhere.

All the while nothing has been done to manage the cost of health care reflected in the premiums of the health plans themselves.

The American Rescue Plan’s (ARP’s) enhanced subsidies ensured that anyone making more than 400% above the federal poverty level wouldn’t pay more than 8.5% of their income on healthcare. Previously, that was the cutoff for eligibility for income-based subsidies. The enhancements also ensured that some consumers qualified for zero premiums or $10 a month premiums.

According to a recent Assistant Secretary for Planning and Evaluation report, an estimated 3.4 million Americans currently insured in the individual market would lose coverage and become uninsured if the ARP’s premium tax credit provisions are not extended beyond 2022. Kaiser Family Foundation determined premiums would more than double for many.

Source: State-based ACA exchanges make backup plans in case Congress fails to act on enhanced ACA subsidies | Fierce Healthcare

Political solutions are probably the worst type of solutions.


  1. Obviously the plan was to continue these subsidies forever but only through recurring temporary extensions. Eventually it becomes permanent. Typical.

    Liked by 1 person

  2. How sad is it that the states don’t believe that Congress can it’s act together and properly fund ACA Healthcare plan that they have to make a backup plan to pay for what they are providing. A few years ago, some states refused to expand welfare benefits because the states feared that when the federal money dried up that their taxpayers would be stuck paying for Washington’s promises. Of course it was a political trap to blame the ruling party in those states as not caring for the poor. Or maybe those states didn’t want to make anymore poor people by having to raise their taxes?

    Liked by 1 person

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