Extension of Subsidies in the ACA

We are only months away from the time of year where most Americans start shopping for better healthcare plans. Every year on November 1st the Healthcare Marketplace opens up to millions of Americans. In the past few years more Americans than ever have enrolled to receive insurance through the Marketplace platform. In 2021 alone, 14.5 million Americans gained access to care through the platform, the most ever since the ACA became the law of the land. In total, reports show 35 million Americans enrolled in coverage the Marketplace, and a record 21 million people enrolled in Medicaid Expansion Coverage.

As we zero into this time of the year, do you know where you stand with your healthcare coverage? It's ok if you don’t, as a majority of Americans tend not to. Traditionally healthcare was something we purchased, pay for, and love to complain about when we use it and “it did nothing,” but more and more of today's consumers are not so easily fooled when shopping for health insurance. The past few years have had an increase of people using their insurance, which means they are finally feeling the financial burden even more so, when it’s not just being used for an annual checkup.

With medical debt on the top of most Americans' financial burden list, today's average consumer is much more attentive to what they pay out of pocket, and has forced them to pay attention to what their policy actually pays out. This means that your broker is required to be much more knowledgeable, and ready to provide a larger variety of products from which the consumer can choose from. 

Plans have also become more competitive and costs have gone down for consumers. To add to all this, the subsidies which are available for the middle class have increased to finally make receiving access to care a possibility. With the recent Inflation Reduction Act those expansions which were set to expire at the end of this year, will now be expanded until 2025.

With the new expansion the premium payments in 2023 will for the most part remain the same. The advantage to enrollees is that premium tax credits shelter them from increases in the underlying premium. Also with the extension of subsidies in the Inflation Reduction Act the rising out-of-pocket premiums will be prevented for virtually all 13 million subsidized enrollees. In the 33 states that use the marketplace, and, enrollees would have expected to pay 53% higher if subsidies had not been put in place. In fact the same could be said for states that operate their own exchanges as to how enrollees will be impacted across the board.

The timing of the Inflation Reduction Act is even more important because currently insurers, regulators, and administrators of state and federal Marketplaces, are now in the process of finalizing 2023 premiums. This is also why you should start preparing yourself for the open enrollment period early in order to maximize your savings. 

Working with a Benefits Management Team (BMT) broker is the first step you can take towards savings. Navigating healthcare is already confusing as it is, and even more so when you are factoring in the ever changing landscape of the direction health care is heading. With BMT we help guide you in the right direction that benefits you as the consumer. Let professionals at BMT show you how to become a consumer of your healthcare, and not a victim. Take your first steps to savings by calling us today.