How States Can Build on the ACA To Improve Affordability and Lower Health Care Costs

The health care portions of the American Rescue Plan (ARP) include the first-ever federal expansion of the Affordable Care Act (ACA).¹ The law increases financial assistance for people already purchasing health care coverage through the ACA’s marketplaces and extends assistance to millions of Americans with incomes above the original ACA eligibility limits. While this federal action is significant, state action remains necessary. States should view the new changes made by the ARP as an opportunity for additional reforms.

Multiple states have already implemented or are advancing proposals to improve health care affordability and increase enrollment in the individual market.² These efforts—which include public options and other related reforms to lower prices in the private market—are a critical...

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