During the COVID-19 pandemic, legislative actions were taken to help manage the economic damage that was caused. One notable action was the ARPA— American Rescue Plan Act— which provided stimulus checks and other assistance to families and small businesses in America. Another was the APTC— Advanced Premium Tax Credit— which was a tax credit taken in advance to help lower health insurance premiums. However, with government spending for pandemic relief mostly ended, many of these actions are scheduled to expire by the end of this year.
“Normally, or under the current existing administration, the Build Back Better Act did propose to make these APTCs permanent,” says Jae Oh, author of Maximize Your Medicare. “Nevertheless, the fact is that without action, they're set to expire at the end of this year.”
The Kaiser Family Foundation, an American non-profit organization, predicts that premiums could rise dramatically in 2023 for millions of Americans who are enrolled in Affordable Care Act health insurance plans and that the increase could be as high as 50%. That level of increase, in a period of high inflation such as we’re currently experiencing, could be very problematic for individuals and families.
Can consumers do anything about this? Jae Oh says they can! Oh suggests that people take a look at their health and at their plans to see if what they have is the best option for them. Having an HSA— health savings account— can help, too, with tax-deferred savings. “There are other ways to plan for lower health insurance premiums in the future for those persons who are in the situation,” Oh says. “It will take some work, but probably going to be worth it, given what looks to be almost certainly coming in next year.”