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Writer's pictureKarl J. Ruth Jr.

Delays Extending The American Rescue Plan’s Health Insurance Subsidies Will Raise Premiums...



Information provided by www.healthaffairs.org - July 5, 2022


The American Rescue Plan Act of 2021 (ARPA) included the largest expansion of the premium tax credit (PTC) since the enactment of the Affordable Care Act (ACA), but only for calendar years 2021 and 2022. With the PTC expansion’s sunset approaching, Congress has been considering passing an extension—first in the Build Back Better Act and more recently for potential inclusion in narrower reconciliation legislation.


Without an extension of the ARPA’s expanded PTC, most of the 14.5 million people in the ACA’s Marketplaces will experience a dramatic rise in premiums due to a reduction in PTC, an increase in insurers’ rates, or both. As many as 3.1 million people could become uninsured, according to a recent report from the Urban Institute. There is broad consensus among stakeholders on the importance of granting an extension, but there has been less discussion of timing. Given that the PTC expansion currently runs through December and that Congress commonly alters tax rules even after a tax year has begun, some observers may believe there is little urgency to act.


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