The American Rescue Plan expanded ACA subsidies above what income threshold?

Question

Accepted Answer

The American Rescue Plan made a critical change to ACA marketplace subsidies: it eliminated the 400% of the federal poverty level income cap for eligibility. Before the ARP, people earning more than 400% of the federal poverty level—which is about $88,200 for an individual or $181,000 for a family of four in 2021—were not eligible for any tax credits to help them purchase health insurance on the marketplace. The ARP removed this cap entirely for tax years 2021 and 2022, making people with higher incomes newly eligible for subsidies. This was a significant expansion of the government's healthcare support. For example, a single person earning $100,000 (which is above the old 400% cap) could now receive subsidies to help pay for insurance premiums. The bill also increased the generosity of subsidies for everyone else, capping premiums at 8.5% of household income (down from 10% under previous law). This expansion reflected a policy choice that healthcare should be more affordable across the income spectrum, not just for lower-income Americans.

The American Rescue Plan expanded ACA subsidies above what income threshold?

Explanation

Sources

Related Questions

PRINCIPLE

EXPLORE

RESOURCES