American Rescue Plan, marketplace subsidies could lead to permanent coverage, affordability increases

An Urban Institute report funded by the Commonwealth Fund found that permanently keeping subsidies created by the American Rescue Plan Act and expanding marketplace subsidies to close the Medicaid coverage gap would strengthen insurance coverage and affordability. 

The combination of the two actions would insure a quarter of America's uninsured population — about 7 million people — according to the report.

The move would decrease average marketplace premiums by 18 percent and nearly double subsidized marketplace enrollment. 

The report estimates that the Black uninsured population would decrease 33.5 percent while the white uninsured population would drop 26.9 percent as a result. 

The fiscal cost of the policies is a $442 billion increase in federal spending over 10 years and a $333 billion increase to the deficit.

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