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.
Political solutions are probably the worst type of solutions.