Important change to Obamacare in the Covid-19 Stimulus Bill
The new Covid-19 Relief bill will eliminate income caps to qualify for a tax subsidy on the Marketplace (Exchange). This means premiums for ACA compliant plans for many people will drop significantly.
The Wall Street Journal points out that currently the ACA only allows for tax subsidies for people earning under 400% of the federal poverty level, or as follows:
- $51,520 or less for a one person household
- $69.680 or less for a two person household
- $87,840 or less for a three person household
- $106,000 or less for a four person household
- $124,160 or less for a five-person household
- $142,320 or less for a six-person household
- $160,480 or less for a seven-person household
- $178,640 or less for an eight-person household
- Add $4,540 for each person in household over 8 persons
Premiums for ACA compliant plans will drop significantly under the new legislation.
Under the new bill, and as the WSJ points out, a 60-year-old with a $55,000 income, premiums would drop by around 50% to 80% depending on the plan, and the legislation would also limit the amount households pay to only 8.5% of their income on healthcare, making healthcare much more affordable for lower-income consumers.
Read the full Wall Street Journal article here.
