August 15 – The improved tax credits that have helped thousands of people afford health insurance during the COVID-19 pandemic will continue through 2025 under the Cut Inflation Act, which received final approval on Friday from
Premium tax credits for people who take out health insurance through health.gov or state-based markets – such as Pennie.com and GetCoveredNJ — were expanded during the pandemic to make health insurance more accessible to people who had lost their jobs or experienced a drop in income. The credits were due to expire in 2023, which would have exposed people to big premium increases next year.
How Medicare drug costs could change under the Inflation Reduction Act
Previously, tax credits were available to people whose income was less than 400% of federal poverty, about
Fearing that unemployment and reduced wages during the pandemic could lead to a spike in the rate of uninsured people, lawmakers in 2021 increased the amount of tax credits and removed the income cap that limited those eligible.
Individuals would have paid on average 53% more — a supplement
Between 2021 and 2022,
For people looking to retain their market coverage in 2023, the continuation of improved tax credits will soften the blow from expected premium increases, according to the KFF report.
(c) 2022 The Philadelphia Investigator
Visit The Philadelphia Inquirer at www.inquirer.com
Distributed by Tribune Content Agency, LLC.