The US Senate’s passage of the Inflation Reduction Act on Sunday expands tax breaks for the millions of Americans who purchase individual coverage under the Affordable Care Act known as Obamacare.
These subsidies, which have been temporary since the passage of the US bailout bill, have increased financial assistance for those already eligible to purchase health insurance under the Anti-Corruption Act, and have also expanded these subsidies to include even middle-class Americans who were “previously priced,” a Kaiser Family Foundation analysis showed. Foundation.
This bill “will save millions of people an average of $800 per year in health insurance premiums,” said Chiquita Brooks Lashore, director of the Centers for Medicare and Medicaid Services.
The three-year subsidy extension, which is expected to pass the Democratic-controlled US House of Representatives later this week, is not only good news for the record number of Americans buying coverage under the ACA but for health insurance companies selling it. . Health insurers said the tax credits are set to expire this year, affecting benefit plans for 2023.
Matt Ailes, president and CEO of American Health Insurance Plans (AHIP), which includes major Obamacare providers like Centene, CVS Health and Cigna as members, said.
The passage of the legislation comes as health insurers expand markets as they sell individual Obamacare coverage to serve more Americans. These health insurance companies are also expanding their offerings with more benefits.
Take CVS Health, which last week announced plans to grow its business selling individual coverage under the Affordable Care Act of 2023 to four new states.
Other health insurers also praised the Senate’s work, saying it maintains stability for a record number of Americans buying coverage under the anti-corruption law.
“The Senate’s extension of these tax breaks will protect nearly 13 million Americans from… cost increase At a time when the price of everything — from gas to groceries — is rising,” said Kim Keck, president and CEO of the Blue Cross Blue Shield Association, which represents some of the largest providers of Obamacare coverage in the country.
The association includes Florida Blue, Health Care Service Corp., which sells health insurance in five states including Texas and Illinois, and Eliancer Health, formerly known as Anthem, which sells Blue Cross and Blue Shield plans in 14 states.
“This move keeps real money in Americans’ pockets and gives them real peace of mind,” Keck said. “We look forward to the House passing and the President signing this into law and we will continue to work with Congress to make health care more affordable.”