Health insurance premiums under ACA set to rise by 30% next year
The cost of health insurance premiums for the most common plans on Healthcare.gov, the federal government’s health insurance marketplace, is set to rise next year. The Washington Post reports the increase will average 30%.
The government has been shut down for nearly four weeks as Democratic lawmakers withhold support for funding bills until Republicans agree to extend expiring Affordable Care Act (ACA) health insurance subsidies. Republicans are refusing to negotiate until Democrats first agree to vote to reopen the government and end the shutdown.
In 2022, Democrats temporarily extended the ACA’s premium tax credits for three more years during the COVID-19 pandemic, but did not make them permanent. These enhanced tax credits are scheduled to end on Jan. 1.
Republicans have opposed the ACA for years and attempted to repeal it in 2017. Many Republicans now say that if Congress is going to make any changes, they want to eliminate the expanded subsidies and revise the whole ACA, rather than just extending the current financial help, The Associated Press reports.
The increase in monthly payments would be the biggest jump in years, affecting about 17 million Americans, according to The Washington Post. With the special subsidies set to expire, many people could end up paying two to three times more for their health insurance starting in 2026.
Democrats want to continue the expanded subsidies to keep insurance affordable, while Republicans say those subsidies were never meant to last.
A study by Kaiser Family Foundation (KFF) found that if the enhanced premium tax credits under the ACA end, monthly health insurance premiums could more than double in 2026.
Americans express concern over expiring subsidies
Some Americans who depend on government tax credits to help pay for their health insurance told ABC News they’re worried about what will happen if those subsidies expire. Without that extra financial help, they might have to switch to a cheaper plan with less coverage or drop coverage altogether.
Doug and Shadene Butchart, a couple from Illinois, get their health insurance through the federal marketplace and spoke to ABC News about their experience. Shadene, who has ALS, originally had a Bronze plan, which is the lowest coverage level. As her medical needs grew, they upgraded to a Gold plan, which covers a greater share of her health care costs.
Their Gold plan costs $1,273.82 per month in total premiums. They receive enhanced premium tax credits that pay $670 of that amount each month, so they personally pay the remaining $603.82 every month, according to the report.
“So right now, we’re doing everything off of my Social Security, and it’s very hard to try and pay all the bills and keep insurance and, if they mess around with the marketplace insurance, it’s going to make it impossible for us to afford insurance,” Doug Butchart told ABC News.
Political stalemate could impact millions
The debate over the ACA subsidies reflects the broader political standoff in Washington. Democrats are pressing to maintain the enhanced tax credits to prevent a dramatic rise in costs for millions of Americans. At the same time, Republicans continue to resist extending temporary measures that they say were never intended to be permanent.
The outcome of this impasse could have wide-reaching consequences for health care coverage of millions of Americans next year.
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Ella Rae Greene, Editor In Chief
