September 08, 2021

American Rescue Plan Could Significantly Lower Costs, Expand Health Care Coverage for Thousands of Angelenos in California’s 28th District

The American Rescue Plan could lower health care costs for tens of thousands of individuals in California’s 28th District, a report commissioned by Congressman Adam Schiff (D-Burbank) has found, including slashing health care costs by $2,400 for eligible individuals and families.

The report, released today, said that by reducing premium contributions and expanding access to premium tax credits, the district’s uninsured rate could drop by 39% if the estimated 33,000 individuals in the district who are currently uninsured enroll in the low-cost plans provided for in the American Rescue Plan.

“Access to affordable health insurance can be the difference between being able to thrive or merely survive, provide for your family or live in poverty — and the COVID-19 pandemic has only exacerbated these hardships and inequities. Thanks to the American Rescue Plan, tens of thousands of families no longer have to choose between staying healthy and staying financially afloat,” said Schiff. “There’s still time for individuals and families to access these life-changing savings, and I encourage anyone in my district who is eligible to act immediately. At the same time, Congress must continue to do everything it can to expand affordable, quality health care to everyone in America, lower costs, and remove barriers to treatment for generations to come.”

For 2021 and 2022, the American Rescue Plan broadens eligibility for financial assistance to help pay for health care coverage through the federal and state-based marketplaces and lowers premiums for most people who currently have an Affordable Care Act marketplace plan. Since it was signed into law by President Biden in March 2021, the American Rescue Plan has, on average, lowered premiums for consumers with existing federal marketplace plans by 40%. For new consumers, the median deductible has fallen by 90%.

While some households that already receive their health insurance through California’s marketplace or ACA tax credits will automatically have their premiums lowered, uninsured households will not receive the enhanced tax credits in 2021 if they do not act by the end of the year.

Based on estimates from the House Committee on Oversight and Reform, individuals and families in CA-28 could see the following benefits:

  • An estimated 44,000 individuals and families who currently purchase health insurance on the individual market could save approximately $2,400 in health insurance premiums annually.
  • An estimated 33,000 individuals who are not currently insured are now eligible for subsidies under the American Rescue Plan -- including approximately 23,000 individuals who can now enroll in an ACA plan for less than $10 a month. If everyone with access to these plans enrolled, it would cut the uninsured rate in the CA-28 by up to 39%, reducing the rate to 6.3%.
  • Others who were not previously eligible to receive tax credits, but now qualify under the American Rescue Plan could also see substantial savings -- especially among older adults who historically pay the highest premiums.

The full report can be read here.