Ohioans Face Steep Health Insurance Hikes as Federal Tax Credits Near Expiration
COLUMBUS, OH – Millions of Ohioans are bracing for perhaps dramatic increases in health insurance costs if Congress fails to renew enhanced premium tax credits currently available through the Affordable Care Act (ACA) marketplace. A new wave of analysis from the Kaiser Family Foundation (KFF) and the Health policy Institute of Ohio paints a stark picture of rising premiums and a potential surge in the uninsured rate.
Nationally, enrollment in ACA marketplace plans has more than doubled to over 24 million people since the introduction of the enhanced tax credits. KFF data shows these credits have been instrumental in affordability,keeping annual premium payments in 2024 more than 75% lower than they would be without them. However, those credits are set to expire, triggering meaningful cost increases for many.
“Enrollees with incomes around 400% of the federal poverty line will be subject to large increases in premium payments if enhanced premium tax credits expire,” KFF research warns.
The impact in Ohio is projected to be particularly acute. The Health Policy Institute of Ohio reports that individuals utilizing the federal marketplace – as Ohio does not operate its own state exchange - could see premiums jump by an average of 30%, the largest requested increase from insurers since 2018. States running their own marketplaces anticipate increases of 17%.
These increases translate to substantial financial burdens for Ohio families. KFF estimates a 60-year-old couple earning $85,000 annually could face a premium increase exceeding $22,000 in 2026 with the credits gone. Specific examples from the Health Policy Institute of Ohio illustrate the impact:
* A 27-year-old Ohioan earning $35,000 per year could see premiums rise from $1,033 to $2,615.
* A 35-year-old couple with a combined income of $30,000 could go from paying nothing with the credit to paying over $1,100 annually.
Experts fear many will be forced to forgo coverage. The policy brief from the Health Policy Institute of Ohio states that those previously enrolled in marketplace coverage are unlikely to qualify for Medicaid due to income levels and frequently enough lack employer-sponsored insurance, leaving them vulnerable to becoming uninsured. The Urban Institute estimates an additional 140,000 Ohioans could lose coverage, increasing the state’s uninsured rate by 29%.
The rising costs are attributed to a combination of factors, including concerns about younger, healthier individuals dropping coverage with higher premiums, escalating hospital costs, increased demand for expensive pharmaceuticals, and broader economic pressures like inflation, potential tariffs on medical supplies, and labor shortages.
The looming changes come alongside existing challenges to healthcare access in Ohio. Medicaid has already experienced cuts, including restrictions on funding for Planned Parenthood health clinics. These cuts have led to staff reductions and even facility closures within the Planned parenthood Southwest Ohio Region, impacting access to preventive and reproductive healthcare for a patient population were Medicaid recipients comprise approximately 40% of clients.
Despite the potential consequences, the proposed changes to the ACA credits are occurring despite widespread public support for their renewal. The future of these credits, and the affordability of health insurance for millions of Ohioans, remains uncertain as Congress weighs its options.
