Bloomberg Law
April 29, 2021, 9:07 AM

Employers Fear Fallout on Biden Plan to Extend Health Subsidies

Sara Hansard
Sara Hansard
Reporter

President Joe Biden’s plans for reshaping health-care coverage could have conflicting consequences for employers—reducing costs by lowering the Medicare age yet potentially undermining company health plans if younger, healthier employees leave for cheaper, subsidized Obamacare coverage.

Biden on Wednesday unveiled his plan for health care and other measures. The plan includes $200 billion in expanded tax credits to permanently subsidize health insurance purchased on the Affordable Care Act exchanges. It leaves out any reduction in the Medicare age, although the White House indicated it would address that separately.

Biden’s proposal builds on the American Rescue Plan Act , which ...

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