One of the biggest deficiencies in the American system of health insurance is that there is very little standardization. Each plan is different. And the devil is in the details, as they say. Your plan might not cost much in weekly or monthly premiums, but it probably won’t provide much of a benefit either. A yearly checkup and a few prescription drugs? No problem. But an emergency room visit that leaves you responsible for paying off a high deductible before your health insurance kicks in a dime? Huge problem.
The harsh reality is that a person can be insured on any plan and still be financially ruined due to COVID-19. The economic relief package passed into law by Democrats addresses some of these concerns.
Director of the National Center for Coverage Innovation at Families USA Stan Dorn said, “If Congress can circle back and make these improvements permanent, it will go a long way toward making insurance affordable in this country.”
Civil rights attorney John Stackett said, “One of the biggest issues with previous relief packages was that they provided protections that disproportionately left minority groups out in the cold. The Biden package does better, but it probably still doesn’t go far enough. Right now, families living below the family line will receive a small payment monthly for the rest of the year. We needed that terribly, and we hope to see an extension in the future.”
What does all this mean? Essentially, it means that health insurance is still far too expensive for many working families in the United States. But by providing what is basically a universal basic income (UBI) for parents, Democrats have found a round-about wait to make insurance payments more manageable. The trick is getting the payments renewed after this year — but as we already know, it’s very difficult to take away this kind of benefit once people have it. And Republicans will have to struggle for how to respond to this when they’re running in the midterm elections next year.
Biden has also ensured that open enrollment for the Affordable Care Act will stay available for months, which is great for people who lose employer-provided coverage. Many citizens are still out of work, and they need healthcare coverage now more than ever.
The American Rescue Plan Act also removes repayment requirements for premium tax credits, which should go a long way into helping families who don’t have any extra funds on hand to pay them. It’s worth noting that those who use the ACA to find coverage must update demographic information now in order to guarantee these changes have the desired effect.