AUSTIN, Texas — A Texas law that allows state regulators to influence how insurers price certain Affordable Care Act health plans could help keep some marketplace premiums lower as enhanced federal subsidies expire in the coming days.
The law applies to individual and family health plans sold on the federal Affordable Care Act marketplace in Texas and gives state officials authority to guide how insurers structure rate increases across plan categories. The policy does not cover most employer-sponsored insurance or government programs such as Medicare and Medicaid.
State regulators can allow insurers to concentrate premium increases in silver-tier marketplace plans through a pricing method known as silver loading. Silver plans serve as the benchmark used to calculate federal premium tax credits.
Federal subsidies increase when silver plan premiums rise, which can result in higher financial assistance for eligible enrollees. Consumers can apply those larger subsidies to other marketplace plans, including bronze and gold options, which can lower net premiums for some households.
The law applies statewide and covers all insurers offering eligible Affordable Care Act plans in Texas.