The ACA Gets a Boost from Biden’s American Rescue Plan Act



The ACA Gets a Boost from Biden’s American Rescue Plan Act


The $1.9 trillion American Rescue Plan Act recently passed by President Biden contains some exciting provisions to boost coverage under the Affordable Care Act (ACA). Here's how:

  • Biden's Act encourages states that have refused to expand Medicaid, to do so with financial incentives. The biggest incentive is the federal government’s decision to take on a 5% increase in Medicaid expenses.
  •  The next major provision to bolster coverage under the ACA is the expansion of tax credits for those buying health insurance directly. Previously, to be eligible for tax credits to help reduce the cost of purchasing a plan, households had to contribute up to 9.83% of their income to pay for health insurance premiums.
  •  Also under the new act, individuals and families may be eligible for a temporary increase in premium tax credits this year, with no household having to pay more than 8.5% of their collective income for health insurance premiums. And, for the first time, those with incomes above 400% of the federal poverty level will be able to get tax credits as well, in cases where premiums exceed 8.5% of their income. Previously, households with incomes greater than 400% of the federal poverty level were not eligible for tax credits.

The Bottom Line

 The exciting action being taken by the Biden Administration to boost coverage under the ACA, are more than likely to result in an influx of individuals eligible for Medicaid.

This is great news for the Non-Emergency Medical Transportation (NEMT) industry. With the anticipated increase in NEMT trips being done under Medicaid, substantial business will flow to NEMT Brokers and Providers.

And for the country, it's refreshing that Biden is honoring the promises he made during his campaign: boost the ACA and attempt to provide relief to those who were locked out of coverage amid the Covid-19 pandemic.



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