New Law Cuts Healthcare Insurance Costs Significantly
How the Law Reduces Costs
The new law introduces a tiered subsidy system that adjusts based on income levels, ensuring that individuals and families who need the most assistance receive it. For example, families earning up to 400% of the federal poverty level will see their premium contributions capped at 8.5% of their income1. This is a significant reduction from previous limits, which often left middle-income families with high out-of-pocket expenses.
Furthermore, the law eliminates the so-called "subsidy cliff," which previously left those earning just above the threshold without financial assistance. Now, even those earning above 400% of the federal poverty level can qualify for subsidies, depending on their specific circumstances2.