American Rescue Plan Expands ACA Subsidies, Cutting Premiums for Millions

President Biden signed the American Rescue Plan Act on March 11, 2021, which included the largest expansion of Affordable Care Act subsidies since the law's 2010 passage. The law eliminated the income cap on subsidy eligibility and capped premiums at 8.5 percent of household income for all marketplace enrollees through 2022. The Congressional Budget Office estimated that 1.3 million uninsured Americans would gain coverage as a result of the enhanced subsidies.