Millions of Americans may soon face higher prices for health insurance as US government shutdown drags into November. Open enrollment has started for health insurance through the Affordable Care Act (ACA) marketplace, and millions of Americans are staring at hiked prices. Without government subsidies, health care premiums could jump dramatically, leaving many Americans struggling to figure out how to keep their health insurance, the BBC reported.
Americans brace for rise in health care costs
Over 24 million people get their health coverage through the ACA, often called Obamacare, but this year, many will find themselves paying much more. Most of them have relied on federal tax credits to keep premiums affordable. But with those subsidies expiring at the end of this year and premiums climbing, unless Congress acts, the costs could skyrocket and families could be forced to shop around for cheaper plans or go without insurance altogether.
According to the nonprofit KFF, without the tax credits, the average monthly insurance bill could rise by 114%, roughly $1,000 more per year, and in some cases, higher.
Democrats vs Republicans: Standoff deepens government shutdown
Democrats are pushing for subsidiary extension as part of a deal to end the ongoing federal government shutdown. Republican leaders, however, want the issue handled separately, once the government reopens.
The Trump administration recently revoked ACA coverage for DACA recipients, who had only become eligible last year. The change took effect in August. The Congressional Budget Office estimates that if the enhanced subsidies end, an average of 3.8 million people will lose coverage each year over the next eight years.
Those who keep their plans will likely pay more than twice what they do now. A 60-year-old couple earning $85,000 could see their premiums jump from $600 to $2,600 a month. A family of four earning $130,000 might see monthly payments rise from $920 to $1,900.
Open enrollment runs from November 1 through January 15 in most states. To start coverage by January 1, most people must enrol by December 15. Plans chosen after that will typically begin on February 1. Until this year, lower-income individuals, earning up to 150% of the federal poverty level (about $23,500 for one person), could sign up anytime. That’s no longer allowed, the programme has ended, according to NBC News.
The rule changed in August after insurers complained that some people waited to fall ill before signing up or switched midyear to better plans, explained Cynthia Cox, director of KFF’s ACA program.
Why Premiums are rising?
Two things are impacting this year’s higher costs: the expiration of enhanced subsidies and increased insurer rates, according to NBC.
“These are the biggest hikes we’ve seen since the ACA exchanges were set up,” said Gideon Lukens, senior fellow at the Centre on Budget and Policy Priorities. “And when you factor in the loss of subsidies, people are looking at more than double what they’re paying now.”