Health Insurance Costs Face Dramatic Increase for Millions as ACA Subsidies remain Unextended
WASHINGTON – Millions of Americans who rely on Affordable Care Act (ACA) subsidies to afford health insurance are facing potentially steep premium increases as Congress weighs extending critical financial assistance. With the current subsidies set to expire at the end of the year, shoppers are entering open enrollment in a state of uncertainty, unsure of the true cost of coverage for 2025.
The subsidies, enhanced during the pandemic, substantially lowered premiums for those purchasing plans through healthcare.gov and state-based marketplaces. Without an extension, the Congressional Budget Office estimates premiums could rise by an average of $1,000 per month for many individuals, adding up to a $350 billion cost over ten years to maintain current subsidy levels.
NPR spoke with Amy Jackson, a 56-year-old medical biller from Butler, Missouri, who currently receives a tax credit bringing her monthly premium down to around $300. Without the subsidy, her premium would jump to $1,250 – half of her monthly wage.”you know, for them, a thousand bucks is probably nothing. It’s probably what they blow on dinner. But for me, that’s half of my wage. You know, I just can’t swing that,” Jackson told NPR.
Jackson, recently diagnosed with breast cancer, emphasized the vital need for continued coverage, stating that lawmakers ”could just flip a switch and fix this.”
The situation is particularly precarious given the timing. Open enrollment is underway, with a deadline of December 15th for coverage beginning January 1st. Experts advise shoppers to explore their options and get an initial estimate of costs, but to remain vigilant for news regarding potential legislative action.
Currently, Republicans control both Houses of Congress and the White House. While some signals suggest a possible extension of the subsidies, no concrete agreement has been reached. The fate of these subsidies rests with Republican leadership, and the outcome will significantly impact access to affordable healthcare for millions of Americans.
