American Rescue Plan

 How does the American Rescue Plan affect Healthcare in the United States? 

Written by: Rithwik M. 

While there are many concerns about the American Rescue Plan from various legislators, one of the largest concerns is its impact on healthcare in the United States. This plan is put into place to begin recovery from the Covid-19 pandemic. The plan extends unemployment insurance benefits and provides direct $1,400 stimulus payments to qualifying Americans, but it also makes several important health-policy related changes. These include providing funding for vaccine distribution and testing to combat the COVID-19 pandemic, making policy adjustments to the Medicaid program, facilitating health insurance coverage and providing more money for healthcare providers.

This rescue plan also impacts the Affordable Care Act in many ways. Specifically, the plan increases and expands eligibility for Affordable Care Act (ACA) premium subsidies for people enrolled in marketplace health plans. Attached below is an example of how the American Rescue Plan will increase premiums in certain states, however, also providing additional benefits to people based on their qualifications and level of need. 

As a whole the American Rescue Plan will make healthcare affordable for the people. According to the Center on Budget and Policy Priorities monthly premium benchmarks will greatly decrease and provide people with much better coverage at a significantly lower price. This decrease in premium is much more impactful for lower income households. As seen in the chart below, while all income levels receive subsidized healthcare coverage those with lower incomes receive the greatest benefits. Similarly, unemployed people will also receive such enhanced subsidies on their health care coverage.  

This established plan will also greatly help with Covid relief. Community vaccine sites will be in place nationwide in the attempt to eliminate supply shortages and continue to invest in high quality treatment. Furthermore, funding to schools and specifically teachers is being provided in the case of emergency paid leaves. One of the main goals is to have K-8 Schools opened and in-person within the first 100 days of the Plan. $400 billion of the plan is going towards establishing a vaccination program, scale up testing for covid-19, and lastly mobilizing public health jobs to support the covid-19 response.

With the plan recently put into place, the Biden administration will likely be on fastrack in the coming weeks and months simply due to the constantly changing nature of the current pandemic. This plan is targeted towards lower income households and workers that are struggling due to the pandemic. In terms of healthcare the two major areas of focus for the Biden administration are Covid Relief and Affordable Healthcare. While things may change as time passes, there will be an immediate impact on the nation's healthcare system that allows for all citizens to receive the best health care possible.  

Works Cited

“American Rescue Plan Act Of 2021: Key Healthcare Provisions.” The National Law Review, www.natlawreview.com/article/american-rescue-plan-act-2021-key-healthcare-provisions.

“The American Rescue Plan Act and Healthcare Providers – A First Look.” JD Supra, www.jdsupra.com/legalnews/the-american-rescue-plan-act-and-3766554/.

“American Rescue Plan's Impact on Affordable Care Act.” PBS Wisconsin, pbswisconsin.org/news-item/american-rescue-plans-impact-on-affordable-care-act/.

“Congress Passes American Rescue Plan; Health Coverage Provisions Could Have Lasting Impacts.” JD Supra,

www.jdsupra.com/legalnews/congress-passes-american-rescue-plan-9599956/.

Karen Pollitz

Published: Mar 17, 2021. “How the American Rescue Plan Will Improve Affordability of Private Health Coverage.” KFF, 18 Mar. 2021, www.kff.org/health-reform/issue-brief/how-the-american-rescue-plan-will-improve-affordability-of-private-health-coverage/.