Obamacare will soon help more middle-class families
Most of the headlines regarding the American Rescue Plan Congress passed on March 10 focus on $1,400 stimulus checks and a 4-month extension of federal unemployment benefits. Less noticed are a set of changes to Obamacare, aka the Affordable Care Act, that are the biggest revamp of health care policy in more than a decade.
The American Rescue Plan, as it's known, will address one of the main flaws in the ACA by expanding health care subsidies to several million middle-income families that haven't been eligible for assistance up till now. Originally, the ACA offered subsidies that covered some or all of the cost of health insurance for lower-income Americans. The benefit declined as income rose, and phased out completely for incomes at 400% of the poverty line. For a family of four, that would be $106,000 in income, which meant above that level they'd get no help purchasing insurance.
Many people above that income level get coverage through an employer, which is generally affordable. But those who have to buy it on their own can easily spend $20,000 or more on insurance premiums alone. Costs are highest for those in their 50s or early 60s who aren’t yet eligible for Medicare. Some people stuck in this category simply forego insurance because it’s too expensive.
The new law eliminates the income cap and limits the amount any family pays for health insurance to 8.5% of household income. That means families that previously earned too much for subsidies can now enroll through an ACA marketplace, and the government will cover any amount paid for insurance above 8.5% of annual income.
https://finance.yahoo.com/news/obamacare-gets-a-makeover-192140275.html
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