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House Committee COVID-19 Relief Package includes Affordable Care Act & COBRA Subsidy Boost
The recent markup of the COVID-19 relief package in the House of Representatives includes a key subsidy boost for both COBRA and the Affordable Care Act (ACA). The main items are:
- Lower-income taxpayers making under 150% of the federal poverty level would get their ACA coverage fully subsidized. Under current law, they are only liable for up to 4.3% of their income for healthcare coverage. These changes will only be in effect through 2022 if approved.
- Those individuals who are unemployed would get an advanced premium tax credit which assumes their income is less than 133% of the federal poverty level.
- The bill would provide a premium subsidy of 85% of COBRA premiums for those eligible through September 30, 2021.
This is only one part of the provisions made to the pending legislative package. The House Ways and Means Committee also includes some key changes to single-employer pension plans.
Keep in mind that this is only markup and the legislation has yet to be passed by the House or the Senate as of the date this article is published. Even though it is not yet in effect, it provides guidance as to where the legislation is likely to go so that you can prepare in advance.
Odyssey Advisors seeks to stay up-to-date with pending legislation to keep our clients and partners informed. If you have questions, please reach out to an Odyssey Consultant for more information.