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Expanded health care benefits stay the same under the Inflation Reduction Act


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Households that get help paying for health insurance through the public market are likely to continue to qualify for more generous benefits under a final Congressional bill.

The Inflation Reduction Act, cleared the Senate on Sunday, which includes an extension of temporarily expanded health insurance benefits — technically tax credits — that are in place for 2021 and 2022. The vote was 50-50 without a vote. Republican Party support. Vice President Kamala Harris voted in favor of the bill.

Assuming the House passes the measure – expected to do so later this week – and President Joe Biden signs it into law, more generous subsidies will remain available through the end of 2025.

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Krutika Amin, deputy director of the Kaiser Family Foundation’s Affordable Care Act program, said: “Without an extension, the majority of the 13 million people on benefits… will see premium payments. danger increases. “This will prevent a large increase in premiums [those] people will see differently. “

Nearly 13 million out of 14.5 million people enrolling in private health insurance through the public market – as allowed by the Affordable Care Act of 2010 – is receiving benefits in 2022. Some people may also be eligible for benefits. get cost-sharing help such as deductibles and copays for certain plans, depending on income = earnings.

How extensions help registered consumers

In general, people who get coverage this way – through healthcare.gov or their state’s exchange – are self-employed or cannot get insurance at work, or they are not eligible for Medicaid or Medicare.

Prior to the temporary changes, aid was generally only available to households with incomes between 100% and 400% of the poverty level. The US Rescue Plans Act, signed into law in March 2021, removed – for two years – that income limit, and the amount anyone pays for premiums is capped at 8, 5% of their earnings as calculated by the exchange.

The bill currently heading to the home will extend these revised calculations.

For some subscribers, the difference is significant: Premium payments can increase by more than 50% without renewal, Amin said. For example, a 60-year-old with an income of just over $50,000 will see those monthly payments increase from $400 to $900.

The subsidy expansion is one of the few provisions in the bill related to health care. The law would also allow Medicare to negotiate the prices of some drugs and would limit annual spending on Part D prescription drugs to $2,000, as well as limit beneficiaries’ monthly insulin prices to $35.



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