New Changes of ACA Health Plan Subsidies: How They Affect You

New Changes of ACA Health Plan Subsidies: How They Affect You

As you may know, the ACA (Affordable Care Act) health insurance marketplace provides subsidies to help people afford coverage. However, some people have recently noticed that their subsidies have decreased or even disappeared altogether since 2020. This can be a significant financial burden, especially for families and individuals who rely on these subsidies to make health insurance affordable.

What is the reason for the decrease in subsidies?

There are a few reasons why your subsidy may have decreased or disappeared. One reason is that the American Rescue Plan Act (ARPA), which was passed in March 2021, increased the amount of subsidies available to people who purchase health insurance through the marketplace. This increase was temporary, for 2021 and 2022.

Another reason for the decrease in subsidies is that the Inflation Reduction Act (IRA), which was passed in August 2022, made some changes to the way that subsidies are calculated. These changes will affect subsidies for plans purchased in 2023 and beyond.

What can you do if your subsidy has decreased?

If your subsidy has decreased, there are a few things you can do. First, you should contact your health insurance company and see if there are any other plans that you can switch to that have lower premiums. You can also shop for plans on the HealthCare.gov marketplace.

Another option is to seek professional help with our licensed agents to see if you qualify for any other programs that can help you afford health insurance. There are many programs available, such as Medicaid and CHIP, that can provide free or low-cost health insurance to eligible individuals and families.

What if you don’t qualify for subsidies?

If you don’t qualify for subsidies, you can still purchase health insurance through the marketplace. However, you will have to pay the full price of the premium. There are a few ways to make health insurance more affordable if you don’t qualify for subsidies. One way is to choose a plan with a higher deductible. This will lower your monthly premium, but you will have to pay more out of pocket if you need medical care.

Another way to make health insurance more affordable is to choose a catastrophic plan. Catastrophic plans are only available to people under the age of 30 or who qualify for a hardship exemption. These plans have very low premiums but very high deductibles.

For more information about health insurance subsidies, visit the HealthCare.gov website.