About 13 million Americans are benefiting from the temporary increased subsidies for Affordable Care Act health insurance premiums as part of the American Rescue Plan.
Those subsidies will expire at the end of 2022 – or are scheduled to. Premium increase notices will go out in October – you know, the month before Election Day.
The Centers for Medicare & Medicaid Services (CMS) estimates average premiums will increase by 53%, from $13.7 billion to $20.9 billion – a $7.3 billion hit to family budgets for those who use a federal ACA exchange.
If the subsidies are extended, it’s just one more deficit item. The Department of Health and Human Services (HHS) reports that ARPA subsidies for existing consumers cost $537 million per month. This will increase as more people enroll.