Joe Biden Has a Plan to Lower Out-of-Pocket Health Insurance Premium Costs

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"Photos from the field—I like Obamacare" by Barack Obama is licensed under CC BY-NC-SA 2.0
"Photos from the field—I like Obamacare" by Barack Obama is licensed under CC BY-NC-SA 2.0

The Affordable Care Act (ACA) currently provides tax credits to families making between 100% and 400% of the federal poverty level to reduce health insurance premium costs on the individual marketplace.

The amount of credit a family receives is calculated to ensure families that qualify for credits do not pay more than a percentage of their income for a silver plan in the market.

These credits have helped many families purchase insurance and gain access to critical healthcare. And they are under attack by the Trump Administration, which is actively working to overturn the whole of the ACA in court.

Trump’s nominee to fill the late Justice Ginsburg’s vacant Supreme Court seat has said she believes the ACA is unconstitutional as written. And even in the middle of a pandemic that has brought the virus home to the Senate and White House, Republicans are rushing to confirm the individual who is likely to be the deciding vote to overturn the ACA. If the whole law is invalidated, millions of Americans will lose access to healthcare during a worldwide public health crisis.

Joe Biden worked with President Obama to pass the ACA, and he has a plan to make it stronger. Biden’s plan states that the “shares of income [families pay] are too high and silver plans’ deductibles are too high. Additionally, many families making more than 400% of the federal poverty level and thus not qualifying for financial assistance, still struggle to afford health insurance.”

The Biden Plan will eliminate the 400% income cap on tax credit eligibility and lower the limit on the cost of coverage to 8.5%. These changes would ensure that no family, regardless of income, will spend more than 8.5% of their income on insurance.

Additionally, Joe Biden plans to increase the amount of tax credits paid to families by calculating credits based on the cost of a gold health insurance plan rather than a silver plan.

Donald Trump claims he has a healthcare plan when his actions say otherwise. Overturning the ACA will take coverage away from millions. The Biden Plan will lower costs for American families and increase access to critical care.

Fact Quotes

Barrett wrote that Roberts “pushed the Affordable Care Act beyond its plausible meaning to save the statute.” If Roberts had interpreted the required payment as a penalty, Barrett wrote, “he would have had to invalidate the statute as lying beyond Congress’ commerce power.”