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.