The White House recently released a series of state-specific fact sheets touting, among other things, how many people will keep their exchange coverage due to the extension of subsidies by the newly passed Inflation Reduction Act (IRA). There’s just one problem. The lofty coverage estimates ignore significant state-level variations in exchange enrollment — and are therefore wildly inaccurate.
The IRA extended the temporary subsidies enacted as part of the 2021 American Rescue Plan Act until 2025. Originally, they were set to expire at the end of this year. Now, for three additional years, exchange enrollees with incomes below 400% poverty will continue to enjoy more generous subsidies than Obamacare provided. Those making more — whom the Rescue Plan made eligible for federal subsidies for the first time — will continue paying no more than 8.5% of their income for coverage.
