The U.S. Senate passed the Inflation Reduction Act on Sunday, providing a tax credit for millions of Americans who bought personal insurance under Obamacare.
These subsidies have been temporary since the passage of the American Rescue Program Act, which increased financial assistance for those already eligible for health insurance under the ACA and expanded such subsidies to more middle-class Americans People, they “have priced out of range before,” an analysis by the Kaiser Family Foundation shows.
Chiquita Brooks-LaSure, administrator of the Centers for Medicare and Medicaid Services, said the bill would “save millions of people an average of $800 a year in Medicare premiums.”
A three-year extension of the subsidy, expected to pass the Democratic-controlled U.S. House of Representatives later this week, is good news not only for a record number of Americans buying insurance under the ACA, but for the health insurers that sell it. The health insurer said the tax credit program expires this year, affecting benefit plans in 2023.
“Every American deserves access to affordable insurance and high-quality health care, and the Senate’s action will continue to provide important support for millions of hardworking American families to purchase their own health insurance for years to come,” the company said. President and CEO Matt Eyles said. America’s Health Insurance Plan (AHIP), which includes large Obamacare providers like Centene, CVS Health, and Cigna.
The passage of the bill comes as health insurers are expanding the market where they sell individual Obamacare coverage to serve more Americans. These health insurers are also expanding their product offerings with more benefits.
Take CVS Health, which last week announced plans to expand its business of selling individual insurance to four new states under the Affordable Care Act.
Other health insurers also praised the Senate’s action, saying it maintained the stability of a record number of Americans buying insurance under the ACA.
“The Senate’s extension of these tax credits will protect nearly 13 million Americans from Increased costs At a time when the prices of everything from gasoline to groceries are going up,” said Kim Keek, president and CEO of the Blue Cross Blue Shield Association, which represents some of the largest Obamacare insurance providers in the United States.
The association includes Florida Blue, Health Care Service Corp., which sells health insurance in five states, including Texas and Illinois, and Elevance Health, formerly Anthem, which sells Blue Cross and Blue Shield plans in 14 states .
“This move puts real money in Americans’ wallets and gives them real peace of mind,” Keck said. “We look forward to passing the House and the President signing this bill into law and will continue to work with Congress to make health care affordable for everyone.”