President Trump signed a significant bill into law on July 4, impacting health insurance coverage for many Americans. If you have a marketplace health insurance plan, you may see an increase in premiums and additional requirements to maintain eligibility. Here are some key changes in the new law and what you can do about them:
1. Premiums may rise significantly:
Previously, enhanced premium tax credits helped make marketplace health insurance more affordable. However, these enhanced subsidies are set to expire after 2025, leading to potentially higher premiums. You can urge Congress to extend the enhanced subsidies before they expire and consider alternative ways to obtain health insurance if needed.
2. Re-enrollment for subsidies required annually:
Under the new law, you will need to re-verify your eligibility for premium tax credits and cost-sharing reductions each year starting in 2028. Failure to do so may result in increased premiums and out-of-pocket costs. Be prepared to provide information during open enrollment to maintain your subsidies.
3. Enrollment restrictions for low-income individuals:
Starting in 2026, applicants with incomes at or below 150% of the federal poverty level may not qualify for premium tax credits or cost-sharing reductions during the year-round special enrollment period. It’s advisable to apply during open enrollment to secure subsidies or explore other special enrollment periods.
4. Changes for immigrants:
Certain categories of immigrants, such as lawful permanent residents, may no longer qualify for marketplace coverage and subsidies under the new law. Verify your eligibility based on your immigration status and seek alternative insurance options if necessary.
5. Riskier advance premium tax credits:
Starting in tax year 2026, there will be no cap on premium tax credit repayments, potentially impacting individuals with low or no income. Provide accurate income information to minimize repayment amounts, or opt to receive the credit when filing taxes to avoid repayment issues.
For more information and assistance regarding these changes, consider reaching out to your members of Congress or the IRS. Stay informed and proactive to navigate the evolving landscape of marketplace health insurance.