When did the enhanced tax credits under the American Rescue Plan Act (ARPA) become available and how long will they remain?
ARPA tax credits became available to consumers on April 1, 2020 and are currently set to expire at the end of 2022
What are some of the biggest benefits of new tax credits under ARPA?
The ARPA tax credits significantly increased subsidies for most consumers purchasing individual market ACA plans on Federal and state exchanges. Current estimates predict that 80% of enrollees will qualify for a plan for $10 or less a month after tax credits, and over 50% will be able to find a Silver plan for $10 or less. 1 out of 4 current enrollees will be able to upgrade to a higher plan category that offers covers more out of pocket costs at the same or lower premiums compared to what they’re paying today.
What will happen if the ARPA tax credit changes are allowed to expire in 2023?
Subsidy levels would revert back to levels originally set under the Affordable Care Act (ACA) which would be much lower, resulting in increased premium costs for the majority of consumers in 2024.