Be aware, expanded premium tax credits may end in 2023. Monthly premiums may be set to increase quite a bit!
ARPA
The American Rescue Plan Act of 2021 expanded eligibility for the premium tax credits through December 2022. People that were previously ineligible for tax credits became eligible. Additionally, much larger tax credits were offered.
Many people were able to get health insurance plans for less than $10 per month. Overall, health insurance became much more affordable for most Americans who rely on the marketplace for their insurance.
End of Higher Premium Tax Credits
Unfortunately, these expanded tax credits are set to expire at the end of 2022. If so, over 3 million or more people (3.1M) could be uninsured in 2023. People with incomes between 138 and 400 percent of the federal poverty line would experience the largest coverage losses. People enrolled in marketplace plans could pay hundreds of dollars more per person each year in premiums. The average person will pay 53% more in monthly premiums. It can be more or less based on where you live.
It’s entirely possible these expanded tax credits may be extended, perhaps indefinitely. But time is ticking by. So, please make sure to at least plan for an alternative if you will be affected.
You may want to look into a short term medical plan. You could also consider a HDHP with a higher deductible and lower premium. There are other planned changes in 2023, which include an expanded list of benefits and services covered prior to meeting your deductible. Therefore, you may be able to get a large portion of your medical needs covered at no cost even with a higher deductible.
As always, you can reach us at iHealthBrokers at 888-918-0518. Remember, open enrollment brings Nov. 1. But, you can schedule your appointment in advance! Our services are 100% FREE!
Jesse Smedley is the Principal Broker for iHealthBrokers and the founder, president, and CEO of Smedley Insurance Group, Inc. and iHealthBrokers.com. Since the inception of SIG in 2007, Jesse has been dedicated to helping people save money on their health insurance by providing them with resources to educate themselves on all their health insurance options, both under age 65 and Medicare beneficiaries. He is featured in many publications as well as writes regularly for expert columns regarding health insurance and Medicare.
