The coronavirus relief package was announced on Monday by House Democrats. This relief package includes a major expansion of the ACA (Affordable Care Act) that would boost premium subsidies already offered under the Obama administration health care law and increase their availability. The bill is a draft of which the House Ways and Means Committee released Monday. The new bill would fully subsidize Obama-Care subsidies for people earning up to 150% of the federal poverty level and unemployed individuals. The supposed measure would also make Americans earning more than 400% of the poverty level about $51,000 for one person and $106,000 for a family of 4 will be eligible for subsidies for the first time and would cap their premium costs at 8.5%.
The subsidy boosts, which Democrats have sought for years would only last for 2 years, through 2022. The measure would also have the federal government subsidize 85% of COBRA coverage. It allows individuals who lost their jobs to stay on their previous employer’s health care, through 21st Sept. A health policy expert at the Kaiser Family Foundation, Larry Levitt tweeted and said, “The increased ACA premium subsidies under the House COVID relief plan, along with a new outreach campaign, could supercharge the upcoming reopened enrollment period and help to reverse recent increases in the number of people uninsured”. Levitt pointed out that this is not a permanent solution since the subsidies last for just two years.
Levitt said, “Many people will still find premiums and deductibles unaffordable, likely leaving tens of millions uninsured”. The provisions are part of a broader relief bill that’s expected to cost around $2 trillion and includes a third $1,400 stimulus check, expanded unemployment benefits at $400 a week, and $160 billion for vaccine distribution. The US House Democrats have planned to pass the bill using a procedural tool known as “Budget Reconciliation”. It would allow them to approve it with their slimmest-possible Senate majority. The US Senate Democrats haven’t yet released their version of the bill. Legislators are eyeing a 14th March deadline to approve the package because the supplemental unemployment benefits will expire for millions of Americans on the above-mentioned date.