Enhanced tax credits that helped 1000’s of individuals afford medical insurance in the course of the COVID-19 pandemic will proceed until 2025 under the Inflation Reduction Act, which on Friday received final approval from Congress.
Premium tax credits for individuals who buy medical insurance through healthcare.gov or state-based marketplaces — similar to Pennie.com and GetCoveredNJ — were expanded in the course of the pandemic to make medical insurance more accessible for individuals who’d lost jobs or experienced a dip in income. The credits were set to run out in 2023, which might have exposed people to steep, unexpected premium increases next 12 months.
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Previously, tax credits were available to individuals with income inside 400% of federal poverty, about $51,500 for a person in 2022, to assist offset the price of premiums for medical insurance plans bought through the federal and state-based marketplaces.
Out of concern that unemployment and reduced wages in the course of the pandemic would result in a spike within the uninsured rate, lawmakers in 2021 increased the scale of the tax credits and removed the income cap that limited who was eligible.
Individuals would have paid a mean of 53% more — an additional $700 a 12 months — for his or her insurance premium in 2022 without the expanded tax credits, in accordance with a latest evaluation by the Kaiser Family Foundation.
Between 2021 and 2022, Pennsylvania saw a 11% increase in individuals who signed up for a health plan through Pennie.com. In Recent Jersey, the number of individuals enrolled in a marketplace plan rose 20%, as more people found coverage that was inexpensive. Each Pennsylvania and Recent Jersey prolonged special enrollment periods to permit individuals who’d lost coverage in the course of the pandemic to enroll.
For people trying to keep their marketplace coverage in 2023, continuing enhanced tax credits will lessen the blow of anticipated premium increases, in accordance with the KFF report.
Premiums are expected to rise 5-14% next 12 months resulting from inflation and a rebound in people using their health plan, after a dormant period in the course of the pandemic, in accordance with Kaiser Family Foundation.
Pennsylvania’s marketplace, Pennie.com, and Recent Jersey’s marketplace, GetCoveredNJ, open for 2023 plan enrollment on Nov. 1.
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