Without Congressional action to extend the innovative tax credits implemented as part of the American Rescue Plan Act (ARPA), 2023 consumer healthcare costs could skyrocket.

The ARP Act signed in March 2021

A significant part of the ARPA benefits is the temporary increase in premium tax credits for people eligible for assistance under the ACA (Affordable Care Act / Obamacare).  ARPA also added eligibility for millions more people by raising the income limit to 400% of the Federal Poverty Limit (FPL) in 2021 and 2022.  The bottom line: Thanks to the Biden Administration, 8 million more people qualify for lower health insurance premiums.

A new research study by Avalere Health for AHIP, America’s Health Insurance Plans organization, shows how important it is that Congress extend key provisions of the American Rescue Plan Act beyond 2022.

The data shows that out-of-pocket premiums will soar to about $800 annually if the ARPA policies lapse.


  • A 55-year-old couple earning $70,551 per year (405% FPL) would face an increase of more than $9,000.
  • A 46-year-old person earning $41,860 per year (325% FPL) would face an increase of $1,300.
  • A 27-year-old earning $19,191 per year (149% FPL) could see a yearly increase of almost $800 per year.

In the report, Avalere Health also predicts increases in costs for seven cities: Arapahoe County, CO; Atlanta, GABroward Country, FL; Cleveland, OHLas Vegas, NV; Philadelphia, PA; and Philadelphia, PA.

Image: Source, Kaiser Family Foundation

Average Annual Benchmark Premium ($5,409) Contribution and Tax Credit for a 40-year-old in 2021 Under ACA and ARP

Congress must act quickly to confirm and extend ARPA benefits.  Affordable health coverage is essential to everyone, and there is a rapid timeline to implement these improvements and pass the crucial Federal budget. 

Regardless of congressional action, Americans will see this impact on their premiums when they receive their renewal letters by November 1, 2022. 

TrueCoverage insurance professionals provide helpful advice and can match you to the best marketplace health insurance plans in your region.  Call today, or use our convenient online purchase tools! 

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