ACA subsidies to be extended under U.S. Senate deal announced this week

Posted on: 7/29/22

The $300 billion inflation relief package deal announced on July 27 by the U.S. Senate contains a two-year extension of a boost to ACA exchange subsidies that has helped fuel record-breaking enrollment of more than 14 million people. The AHA and health care industry has also been lobbying Congress to extend enhanced subsidies for ACA exchange customers set to go away after 2022, which will now sunset in 2024. 

Also included in the proposed package is drug price reform that will allow Medicare narrow authority to negotiate for lower drug prices and introduce other drug pricing reforms. Media reports state the deal contains “the power for Medicare to negotiate for lower prices on up to 10 drugs in 2026 and up to 20 drugs starting in 2029. The package includes a host of other reforms that include a $2,000 cap on out-of-pocket drug costs.” The package is not published yet, so we are waiting for details. (Sandra Harrison)