Industry News

On September 9, 2021, The Commonwealth Fund released its issue brief, The Coverage and Cost Effects of Key Health Insurance Reforms Being Considered by Congress. According to the analysis, the proposed health insurance reforms under consideration by Congress would likely lead to a significant drop in uninsured Americans. 

As part of the budget process for fiscal year 2022, Congress is considering a package of two reforms to the Affordable Care Act (ACA). Under the package, the enhanced premium subsidies included in the American Rescue Plan Act (ARPA) would become permanent. In addition, the Medicaid coverage gap would be filled by extending eligibility for marketplace subsidies to people earning below 100% of the federal poverty level (FPL) in 12 states that have not yet expanded Medicaid.

The two policies combined would: 1) largely expand eligibility for marketplace subsidies; 2) decrease the number of uninsured people, particularly at lower income levels; and 3) reduce household financial burdens for health care.

The brief finds that “Making ARPA premium subsidies permanent and filling the Medicaid coverage gap would reduce the number of people without insurance by nearly one-quarter, or 7.0 million people, in 2022. All states would see a drop in their uninsured population … Enrollment in subsidized marketplace plans would nearly double, while premiums would fall by 18 percent on average. Federal spending would increase by an estimated $442 billion over 10 years[.]”

The study is available here.