Extending Health Subsidies Averts Premium Hikes, Risks Inflation

Expanding Obamacare subsidies under the Inflation Reduction Act will prevent premiums from rising more than 50% on average for 13 million people, but they also are likely to lead to more health-care inflation and fewer small businesses offering health insurance, according to health-care analysts.

The bill (H.R. 5376) passed Aug. 7 by the Senate—supported by President Joe Biden and likely to be passed this week by the House—extends the Affordable Care Act subsidies for three years. The enhanced subsidies were enacted under the American Rescue Plan Act in 2021, but are set to expire at the end of ...