Under the Biden Administration, “tax credit” subsidies for the Affordable Care Act (Obamacare) were temporarily expanded in 2021 and 2022. This expansion allowed higher income earners to now use tax payers money to get lower cost health insurance, if they wanted to get Obamacare insurance.
There is good news for those that have taken advantage of this temporary increase of tax dollars being spent to lower the cost of health insurance. As part of the Inflation Reduction Act, the federal government passed a three year extension to the expansion of health insurance subsidies. Which means that under the Biden Administration, more tax payers money than ever before is being pumped into Obamacare in an effort to inflate enrollment numbers and artificially decrease the cost of health insurance temporarily.
Is this good or bad?
Good for those taking advantage of the additional subsidies. Bad for tax payers. Bad for the next administration who will probably get blamed for increasing prices, even though that’s not actually what is happening.
How do I take advantage of the tax credit extension?
To qualify for the tax credit subsidies on the Affordable Care Act plans, you just need to be eligible to enroll and want to enroll into an Obamacare plan. Your household income then needs to be within the acceptable range for your household size. To see if you qualify, request a quote and we would be happy to discuss it with you.