If Congress allows the expansion of the health care subsidies included in the American Rescue Plan Act (ARPA) to expire, thousands of South Carolinians could see their 2023 premiums skyrocket. This is specifically related to individuals who get their health insurance through the Affordable Care Act’s (ACA) individual marketplace.
There are currently about 365,000 individuals who have ACA plans. Amongst those individuals, 60,000 would lose health coverage and become uninsured if these subsidies don’t get extended. In addition, 225,000 South Carolinians would lose all or a portion of the financial assistance they currently receive.
Benefits Of Temporary Subsidies
The ACA has provided subsidized health insurance on HealthCare.gov and state-run Marketplaces since 2014. There are approximately nine million individuals who purchase coverage with federal premium assistance. However, there are still millions who remain uninsured.
The March 2021 COVID-19 relief legislation, also known as the ARPA, extends eligibility for ACA health insurance subsidies to individuals who buy their own health coverage on the Marketplace who have incomes over 400% of poverty. This law increases the amount of financial assistance for those on lower incomes who were already eligible under the ACA. It is shown that 21.8 million individuals are eligible for a subsidy to purchase Marketplace coverage with the passage of the ARPA. Also, 63% of uninsured individuals are now eligible for financial assistance through the Marketplaces, Medicaid, or basic health plans.
Since the temporary subsidies in 2021, there has been an increase in financial assistance. In addition, these subsidies expanded aid to many middle-income individuals who had previously been ineligible for assistance.
What This Means For Other States
Outside of South Carolinians who are expected to see health premiums rise, the federal government has warned millions of individuals across the U.S. that they could lose health insurance. It is estimated that approximately three million individuals would lose health insurance should these subsidies stop. In addition, 10.4 million individuals with an ACA plan would pay a significantly higher dollar amount for coverage to stay insured.
How GMS Comes Into Play
Access to quality, affordable health care is essential for individuals to remain healthy. While questions are still looming, it’s concerning to individuals in South Carolina and across the U.S. who have been utilizing these subsidies. Let GMS take the stress off your shoulders. We now offer individuals voluntary benefits, providing you with access to health care, life insurance, pet insurance, and so much more. Contact us today.