Analysis Finds 3.7 Million Americans Are Newly Eligible For Subsidized ACA Marketplace Health Insurance Due to Temporary Assistance in the ARPA

More Than 6 in 10 Uninsured Americans Are Now Eligible for Financial Assistance to Get Health Coverage Under the ACA, With Most Qualifying for Coverage with Little or No Premium Payment

The number of Americans eligible for subsidized ACA Marketplace health insurance has risen by 20 percent, from 18.1 million to 21.8 million, due to provisions in the American Rescue Plan Act (ARPA) that temporarily extend eligibility for federal subsidies and boost the amount of financial help available, a new KFF analysis finds.

The increase means that 3.7 million people are newly eligible for subsidized Marketplace coverage, most of whom have incomes between 400 and 600 percent of the poverty level (up to $76,560 for an individual or $157,200 for a family of four).

For people already buying their own insurance, average premium savings in ACA Marketplace plans will be an estimated $70 per month, a reduction of about 25 percent from the current premiums people pay after factoring in any federal subsidies. (Those with off-Marketplace plans would need to switch to ACA coverage to get the savings.) The amount varies by age, location, and income level.

Moreover, the analysis finds that at least 5.2 million current enrollees and potential Marketplace shoppers now have guaranteed access to platinum-like ACA plans that will cost them nothing for monthly premiums, after subsidies are factored in, and would have significantly reduced deductibles (averaging $177).

With 1.4 million uninsured people newly eligible for subsidized Marketplace coverage under the ARPA, 63 percent of uninsured people in the U.S. are now eligible for financial assistance to get coverage through the Marketplaces, a Basic Health Plan, or Medicaid – up from 57 percent before passage of the law.

In fact, at a minimum, nearly half of all uninsured people (46%) are eligible for a health plan through one of these programs with little or no premium, the analysis finds. This includes 7.3 million uninsured people who are eligible for Medicaid and at least 6 million uninsured people who could get a Marketplace plan with no monthly premium payment.

The temporary measures last for two years and are retroactive to January 1, 2021. The Congressional Budget Office projects that the new subsidies will add $34.2 billion to federal deficits over ten years, with most of the costs concentrated in 2021 and 2022 and on people who are already buying marketplace coverage.

The full analysis, How the American Rescue Plan Act Affects Subsidies for Marketplace Shoppers and People Who Are Uninsured, was released today in conjunction with a KFF web briefing about the health coverage and affordability provisions in the ARPA.

For a playback of the briefing, as well as more data and analyses related to ARPA and the ACA, visit kff.org.

CONTACTS:

Chris Lee | (202) 654-1403 | chrisl@kff.org
Craig Palosky | (202) 654-1369 | craigp@kff.org

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