The House and Senate passed the American Rescue Plan Act of 2021 in effort to temporarily expand eligibility to pay for health insurance through 2022. As a result of this act, Production Tax Credits (PTCs) were formed. According to Insurance NewsNet, “For Florida, the number of uninsured residents would grow by 24.8% according to the estimates in the study. It would also mean a five million dollar drop in total spending on health care for non-elderly residents in the Sunshine State.”
Before the ARPA (American Rescue Plan Act of 2022), Congress implemented the Affordable Care Act of 2010 that initially started to allow PTCs to be available to states across the U.S. Florida residents make up 513,000 of the three million Americans at risk of losing healthcare coverage since speculation began that the Affordable Care Act wouldn’t be extended.
Why Florida Residents Are Affected
Florida falls into the category of a non-expansion state. A non-expansion state does not have to expand access to Medicaid or Medicare eligibility by the federal government. Other non-expansion states include Texas, Georgia, and North Carolina. If the extension doesn’t pass, residents in these states, specifically Florida residents below the federal poverty line (FPL), are more at risk of losing their healthcare coverage.
According to FamiliesUSA, a healthcare advocacy organization, Florida resident premiums could go up 61% if the PTCs expire or health provisions are not extended. At this rate, health insurance rates would increase to $1.6 billion in 2023.
Partnership Benefits With A PEO
As a business owner, we understand you want to offer your employees the best healthcare plan. By partnering with a PEO, we can offer a benefits plan sponsor that includes benefit coverages, a flexible spending account, a comprehensive 401(k) plan, and more. You will have access to a team of experts who will answer any questions you may have. Contact us today.