"Eligibility for the Obamacare subsidies, which were put in place during the COVID-19 pandemic to help people afford health care coverage, would be capped at 700% of the federal poverty level, according to two people with knowledge of the proposal. The people spoke to The Associated Press on condition of anonymity to discuss a White House proposal that is in draft form."
"The baseline tax credits that were originally part of the Affordable Care Act were capped at 400% of the federal poverty level, but that cut-off was suspended because of the temporary COVID-era credits that allowed middle- and higher-income people to benefit from subsidies too. The White House would also require those on Obamacare, regardless of the type of coverage, to pay some sort of premium for their Obamacare plans."
"The subsidies were at the heart of the Democrats' demands in the government shutdown fight that ended earlier this month. Most Democratic lawmakers had insisted on a straight extension of the tax credits, which expire at the end of the year as a condition of keeping the government open. One option is a requirement that everyone pay 2% of their income, or at least $5 per month, for lower-tier plans."
The White House is circulating a draft proposal to extend Affordable Care Act subsidies for two years as current pandemic-era tax credits expire at year-end. The proposal would cap subsidy eligibility at 700% of the federal poverty level, above the ACA baseline of 400% that was suspended under COVID-era enhancements. The plan would require all ACA enrollees to pay a minimum premium, effectively ending zero-premium plans for lower-income enrollees; one option cited is 2% of income or at least $5 per month for lower-tier plans. Officials say the plan is draft and not final as policymakers seek broader solutions and address fraud concerns.
Read at ABC7 Los Angeles
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