COVID Relief Package Seeks To Expand the Affordable Care Act

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On February 8, 2021, House Democrats revealed a $1.9 trillion COVID-19 relief package, which in part would increase the ACA’s financial assistance for two years, in an effort to make premiums more affordable for enrollees. Specifically, in what would be the first significant expansion of the ACA subsidies in years, the provision would increase subsidies so that enrollees would not have to pay more than 8.5% of their income in health insurance premiums.

The relief package also provides temporary support for individuals seeking to keep their employer-sponsored insurance and additional monies to states that have yet to expand their Medicaid programs.

Although this provision is strictly temporary at this point to address healthcare access during the COVID-19 pandemic, this is likely something that the Biden Administration will seek to make permanent in the future.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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