Biden administration officials are expected to present the proposed regulation ahead of the passage of the Health Care Act 2010, which also marks the return of former President Barack Obama to the White House following his resignation.
Obama and President Joe Biden and Vice President Kamala Harry outline the ACA’s coverage achievements and the administration’s broader efforts to reduce health spending.
In a statement on Tuesday, the administration highlighted its new proposal to rectify the family shortcoming as the most significant administrative move to extend ACA coverage since the law’s enactment, said one expert on the issue. Nevertheless, it may take months to complete the proposed regulation.
Democrats also expanded their ACA subsidy authority last year as part of the passage American Rescue Plan, While enrollment in law insurance exchanges reached 14.5 million last year, a record high. These extended subsidies expire at the end of this year, raising concerns within the party that higher health costs could affect millions of people around the midterm elections.
The White House declined to comment.
Democrats and health advocacy groups have long called for a family gap to be rectified, which has blocked some Americans from receiving subsidized coverage because the federal government designates family members of employees who have access to employer-based health plans.
According to the ACA, people can qualify for subsidized health insurance if the cost of their employer-based coverage rises above a fixed percentage of their family income.
But the Obama administration initially interpreted this provision as a bonus to one individual – even if that person’s spouse and children were covered under the plan, which increases its overall value.
Health law experts have since argued that the provision could be re-interpreted to consider the additional costs to additional family members. The administration began work on changes to the law last year, which resulted in introducing a proposed rule that justified the OMB regulatory review in late March.
According to the Kaiser Family Fund, most people affected by the delay will pay less for ACA coverage than their employer-based plan if the gap is closed.
“Correcting family deficits is the most important thing they can do outside of Congress to improve ACA access to coverage,” said Larry Levitt, KFF Executive Vice President for Health Policy.
Biden administration plans to rectify Obamacare’s “family shortcoming” and expand coverage.
