Health Premiums Face Potential 50% Increase as Congressional Debate Stalls
WASHINGTON – Millions of Americans could see their health insurance premiums jump as much as 50% next year if Congress doesn’t act to extend Affordable Care Act (ACA) subsidies before open enrollment begins November 1st. The subsidies, initially expanded during the pandemic, are set to expire, potentially impacting middle-class and small business owners who rely on them to afford coverage.
The debate centers on extending enhanced premium tax credits that lower the cost of health insurance purchased through the ACA marketplaces. Democrats, led by House Minority Leader Hakeem Jeffries, are pushing for an extension, with Jeffries stating they “will not support a partisan Republican spending bill that continues to rip away health care from the american people.”
Republicans are divided. While some acknowledge the potential for significant premium increases – Missouri Senator Josh Hawley warned of “massive increases” and premiums that people “will not be able to afford” – others express concerns about the cost. Senator Ron Johnson, R-Wis., noted the extension “is costing us billions of dollars.”
A potential short-term government funding bill currently being considered by GOP leaders is unlikely to include an extension of the subsidies, according to Senate Majority Leader John Thune, R-S.D. Tho, Thune indicated openness to a compromise, stating, “Maybe there is something we can do in the middle as a solution,” while acknowledging his caucus is split on the issue. He also noted that premium notices will be released soon.
House speaker Mike Johnson, R-La., has indicated many of his members oppose an extension, but hasn’t ruled it out entirely. A bipartisan group of House Republicans,including Rep. Jen Kiggans, R-Va., and Rep. Tom Suozzi, D-N.Y.,have introduced legislation to extend the tax credits for one year,recognizing the vulnerability of constituents like those in Kiggans’ coastal Virginia district.
Several Senate Republicans, including John Cornyn of Texas, have suggested scaling back the subsidies for higher-income recipients. Senate Finance Committee Chairman Mike Crapo, R-Idaho, is working to find a solution, stating, “I’m trying to find a solution, I’m not telling you what the solution is.”
Senator Tammy Baldwin, D-Wis., emphasized the urgency, warning of “real sticker shock” as ACA plan prices are posted next month and stressing the “timing is vital.” Open enrollment begins November 1st.
