Fact Sheet: What happens to premiums if the extra help from the American Rescue Plan expires?

On March 11, 2021, President Joe Biden signed a new law (American Rescue Plan) to combat COVID-19 and build our country back better. The American Rescue Plan included subsidies that lower health care costs and expand access to affordable, comprehensive health coverage.

The subsidies helped lower the cost of care by:

• Providing additional help with premiums for nearly 90 percent of the 14.5 million consumers that signed up for health coverage on the Health Insurance Marketplaces during the 2022 Open Enrollment Period.™
• Making help available, for the first time, to individuals with incomes around $52,000 and $106,000 for a family of four.

Thanks to the American Rescue Plan subsidies:

• A record-breaking 14.5 million people signed up for health insurance coverage through both federal Marketplace (via HealthCare.gov) and State-Based Marketplaces during the recent Open Enrollment period;
• More than 90% of the people on HealthCare.Gov received financial assistance;
• 4 out of 5 people could find plans that cost less than $10 per month on HealthCare.gov; and
• Families saw savings of $67 per person per month in premiums in 2021.

Premiums will skyrocket -- if Congress does not extend American Rescue Plan subsidies

Currently, the ARP premium tax credits are set to expire at the end of 2022.

If Congress does not extend the ARP, HHS analysis projects that:

• Many Health Insurance Marketplace consumers across the country – in rural and urban areas – will likely see substantial increases in out-of-pocket premium costs
• The number of uninsured Americans will increase significantly
• Approximately 3 million Americans could lose their health insurance
• More than 10 million Americans will have reduced premium tax credits or lose them entirely:
  • 8.9 million people will have their tax credits reduced (averaging $406 per person, annually)
  • 1.5 million people will lose subsidies entirely (averaging $3,277 per person, annually)

To learn more, visit HealthCare.gov.

View a breakdown of state-specific data.

View the 2022 HealthCare.gov Consumer Savings Under the American Rescue Plan (By State / Congressional Districts)

View the 2022 HealthCare.gov Consumer Savings Under the American Rescue Plan Methodology

*This content is in the process of Section 508 review. If you need immediate assistance accessing this content, please submit a request to digital@hhs.gov. Content will be updated pending the outcome of the Section 508 review.