WASHINGTON DC – AUGUST 16: US President Joe Biden (C) signs the Inflation Reduction Act into law. … [+]
57% of voters surveyed in a Morning Consult poll expected the new law to have no positive impact on inflation and could make it worse, prompting Americans to vote for the Inflation Reduction Bill. may not actually accept inflation.
But for those who buy health insurance through Healthcare.gov, the new law could really save money.
The Controlled Inflation Act includes provisions to extend health insurance subsidies to reduce monthly premiums for the next three years. These grants were expanded by the American Relief Plan Act of 2021 and were scheduled to expire at the end of this year. If it had expired, the Kaiser Family Foundation (KFF) estimated that nearly all of the 13 million people receiving subsidies for Health Insurance Marketplace insurance would have been affected by the combined effects of higher premium rates and reduced subsidies. , estimated that it was facing an increase in monthly premiums. For those enrolled in the federal marketplace, Healthcare.gov, his premiums could have gone up by more than 50%.
Before the American Rescue Plan went into effect, only those earning between 100% and 400% of the Federal Poverty Level (FPL) were eligible for the premium tax credit. Tax credits can reduce your premiums directly by obtaining them in advance and paying them directly to your health insurance company. This is called an advance premium tax credit. Or deducted through annual tax returns. In any event, subsidies were adjusted at tax time to account for changes in income that may affect eligibility.
Those earning more than $54,360 (400% of 2022 FPL) previously faced a subsidy cliff. Those who earned 400% or more of their FPL were required to pay full premiums without offsetting the cost of health insurance.
In the American Rescue Plan, the criteria changed from a strict cut-off of income to a percentage of annual income required to pay for health insurance. A person who must pay more than 8.5% of his income to health insurance may be eligible for subsidies, regardless of income. This approach has reshaped the premium tax credit around affordability.
According to the U.S. Department of Health and Human Services, in 2021, 14.5 million people will have health insurance through Healthcare.gov (a federal marketplace) and state-based health insurance markets. More than 90% of these subscribers could save an average of $67 per person per month in premiums with some kind of subsidy.
By 2022, 1.1 million people earning more than 400% of the FPL will qualify for the premium tax credit. HHS estimates that 10 million people have lost or had their premium subsidy reduced. As many as 3 million people could lose their health insurance entirely if the premium tax credit was not extended.
Anti-inflation laws have drawn attention for their potential impact on prescription drug prices, with 83% of Americans saying this is unreasonable.
The new law will allow Medicare, for the first time in 2026, to negotiate prices for 10 prescription drugs covered by Medicare Part D. The scope of negotiations will expand to 20 drugs, including drugs covered by Medicare Part B, by 2029. The law also makes Medicare subscribers’ out-of-pocket insulin costs $35 a month, cuts Part D catastrophic coverage co-insurance in 2024, and cuts Part D annual out-of-pocket cost caps to him in 2025. add to the $2,000 of
According to the KFF, it’s unclear how many people would benefit from drug price negotiations without knowing which specific drugs would be affected, but other provisions suggest that roughly 1 million to 4 million Medicare members will have money. can help you save
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