IRA enabled a three-year extension (through 2025) of enhanced subsidies for people buying their own health coverage on the Affordable Care Act Marketplaces.

These subsidies have the biggest impact for 60 years or above individuals. In the 33 states using HealthCare.gov, premium payments in 2022 would have been 53% higher (more than $700 per year more) on average if not for these enhanced subsidies. The same is true in the states operating their own exchanges.

The final bill to Government is not yet known, but initial CBO estimates are ~$25B.

Whether the subsidies last 1 year or all 3, there may be a sticker shock waiting individuals at the end of this support.