KFF June 30, 2022
The Affordable Care Act (ACA) offers subsidies to offset the cost of health insurance, capping how much people signing up on the ACA Marketplaces pay at a certain percent of their income. These subsidies work on a sliding scale, with people whose incomes are just above poverty receiving the most generous subsidies while those with incomes of three to four times poverty paying more. For years, people with incomes just over four times the federal poverty level were not eligible for subsidies under the ACA, meaning even a small increase in income could mean they would have to pay full price – what came to be known as the “subsidy cliff.”
That was the case until the American Rescue Plan...