The US House of Representatives on Saturday passed President Biden’s $1.9 trillion “American Rescue Plan”. Republicans unanimously opposed the bill, and all but two Democrats voted in favor of the bill. The bill now moves to the Senate where it will face greater tests under its reconciliation rules that will allow the bill to pass with a simple majority vote. Democrats hope to get the final version of the bill to the President’s desk before March 14th when extended unemployment benefits expire.
Below are the headlines of the provisions that may impact employers and health plan sponsors:
Federal Subsidies for COBRA Coverage
The bill provides COBRA subsidies so workers who have been laid off or had their hours reduced can keep their doctors and health coverage.
Increased Premium Tax Credits
The bill reduces health care premiums for low- and middle-income families by increasing the Affordable Care Act (ACA) premium tax credits for 2021 and 2022.
There are various potential implications under the bill for employers and plan sponsors. As more details on the bill unfold, we will share them. For now, we await further details on the progress of the bill. It becomes law only once the President signs a final version of the bill passed by the Senate.
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