ACA more expensive and subsidy's less this year?

[Doug Morton]

On ACA quotes, aside from cost of inflation in plans, it seems subsidies are lower for the same income range from last year. I thought subsidies were increased this year. I've run several of the same clients from last year and none of them had subsidies even close to last years subsidy and so are experiencing sticker shock. This is in SC.

 

[Yagents]

On ACA quotes, aside from cost of inflation in plans, it seems subsidies are lower for the same income range from last year. I thought subsidies were increased this year. I've run several of the same clients from last year and none of them had subsidies even close to last years subsidy and so are experiencing sticker shock. This is in SC.

Correct, it's ACA logic 101. (or illogical)
Premiums go down in the market due to other carriers low balling the market.
Tax credits go down because of it. (vs last year) (has nothing to do with ARPA law)
BUT, Premiums go up for the client if stay on existing plan.
You have to chase the plans that low balled the market to keep your premium the same.

 

[Truce]

Here in NJ/PA, the exchange sent out letters to every consumer explaining that the 2022 prices would "seem" higher due to the way the mid 2021 law change was applied. Since the change went through in July, but was retroactive to January, the credits for the rest of 2021 were doubled to "catch up" and apply all the new funds. This inflated the credits for the last 6 months of 2021.

In 2022 these credits would be applied evenly, so many people will see an increase from Dec 2021 to Jan 2022. Yes, they'll be shocked, no matter how you warn them or how you explain it. Especially the many people who had premiums eliminated mid year that now will have to re-establish monthly payments.

The people with 2021 premiums waived for unemployment will have the same 2022 "shock".

Embrace the insanity of the ACA and have a fun next couple months.

 

[goillini52]

Premiums go up for the client if stay on existing plan.

Sounds like cable/internet.