CMS: American Rescue Plan Tax Credit Reduces ACA Marketplace Coverage Costs

More than one million consumers are paying $10 or less per month for health insurance Marketplace coverage due to the American Rescue Plan’s (ARP) expansion of advance premium tax credit (APTC) payments, according to a recent Centers for Medicare & Medicaid Services (CMS) press release.

The CMS press release indicates that 34% of all consumers selected a plan of $10 or less per month after the April 1 implementation of ARP expanded APTC, which includes 43% of new consumers and 30% of returning consumers. Of 1,034,624 beneficiaries, 687,275 consumers were returning and 347,349 were new.

Nearly 2.3 million returning Marketplace beneficiaries reduced their monthly premiums by over 40% (on average, $103 to $61) after APTC. Additionally, the average monthly premium for new enrollees was reduced by 26% and the median deductible by 83%.

A record 31 million Americans had coverage under the ACA as of February 2021. Since then, more than 1.2 million additional Americans have enrolled in Marketplace programs during the special enrollment period implemented by the current administration.

Newly included demographic data in the special enrollment period report indicate that 15% of new enrollees were Black and 18% were Hispanic, compared to 11% and 16%, respectively, in previous years.

“Having access to quality, affordable health coverage gives Americans peace of mind when they need to seek care,” said Xavier Becerra, secretary of the US Department of Health and Human Services, “…each week we continue to see more Americans experience the relief and security that comes with affordable, quality health coverage.”

Reference:
Centers for Medicare & Medicaid Services. Four in ten new consumers spend $10 or less per month for HealthCare.gov coverage following implementation of American Rescue Plan tax credits [news Release published June 14, 2021]. Accessed June 15, 2021. https://www.cms.gov/newsroom/press-releases/four-ten-new-consumers-spend-10-or-less-month-healthcaregov-coverage-following-implementation