Extending ACA Subsides May Permanently Increase Enrollments Each Year

The Congressional Budget Office (CBO) released an analysis on a proposal to permanently extend the enhanced ACA Marketplace Place Health Insurance subsidies which are set to expire at the end of this year. The CBO also found that if the subsidies became permanent, it would balloon federal spending by $247.9 billion. Extending these enhanced subsidies on the Affordable Care Act’s insurance exchanges would also lead to 4.8 million new sign-ups a year and slight declines in non-group coverage. Senate Democrats are working to pass a two-year extension to the subsidy enhancement passed originally by the American Rescue Plan Act for coverage years 2021 and 2022. The increased subsidies helped ensure some low-income customers had low or no premiums for coverage.