New Affordable Care Act subsidies available


New Affordable Care Act subsidies available
The health insurance subsidies are funded by the $1.9 trillion pandemic relief package President Joe Biden signed into law in early March. (Source: healthcare.gov)

(CNN) - Enrollees of the Affordable Care Act (also known as Obamacare) and those looking for coverage can start accessing new premium subsidies on the federal exchange beginning Thursday.

The health insurance subsidies are funded by the $1.9 trillion pandemic relief package President Joe Biden signed into law in early March.

The relief package made two changes to subsidies to address long-standing complaints that Obamacare plans are not affordable for many people, especially the middle class.

Enrollees will now pay no more than 8.5 percent of their income toward coverage, down from nearly 10 percent, and lower-income policyholders will get subsidies that eliminate their premiums completely.

The unemployed will have to wait longer to enroll in zero-premium plans, as this type of subsidy doesn’t currently exist and will take longer to set up.

Residents of the 36 states that enroll through healthcare.gov will see the larger subsidies when they go to the site starting Thursday.

States that run their own exchanges are aiming for a similar timeline, but implementation dates could vary.

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