To find out more about Cathy Cress, MSW, the author, click here

 What devastation will come when the ACA expires?

Obamacare premiums (ACA)are set to rise 30 percent

The ACA tax credits are at the heart of the federal government shutdown.

No ACA extension means premiums soar for millions.

As many as 4 million people could become uninsured

What devastation will come when the ACA expires? The Affordable Care Act (ACA) presently includes enhanced premium tax credits that have made ACA coverage more affordable for low- and middle-income enrollees. Those credits will expire this year if Congress doesn’t extend them. That expiration will more than double what subsidized enrollees currently pay for premiums next year, according to an analysis by health care research nonprofit KFF. KFF projects that without the enhanced tax credits, the average annual out-of-pocket premium payment for subsidized enrollees will more than double in 2026, rising by an average of 114%. Both the Congressional Budget Office (CBO) and KFF (formerly the Kaiser Family Foundation) estimate that as many as 4 million people could become uninsured and would lose access to affordable health coverage if the Affordable Care Act’s (ACA) enhanced premium subsidies expire at the end of 2025.

   What devastation will come when the ACA expires?

Obamacare premiums (ACA)are set to rise 30 percent

The ACA tax credits are at the heart of the federal government shutdown.

No ACA extension means premiums soar for millions.

as many as 4 million people could become uninsured

The ACA tax credits are at the heart of the federal shutdown.

What devastation will come when the ACA expires? The ACA tax credits are at the heart of the federal government shutdown, which began 26 days ago and shows no signs of ending. Democrats have demanded that the subsidies be extended as part of any funding deal they sign, while Republicans say they’ll only negotiate on the issue once the government is funded. With Congress deadlocked and the open enrollment period for ACA plans approaching on Nov. 1, Americans are left to navigate the unknown.

No ACA Extension Means Premiums Soar for Millions

  What devastation will come when the ACA expires?

Obamacare premiums (ACA)are set to rise 30 percent

As many as 4 million people could become uninsured

No ACA extension means premiums soar for millions.

The ACA tax credits are at the heart of the federal government shutdown.

According to the Washington Post, average Obamacare premiums are set to rise by 30 percent, documents show.

What devastation will come when the ACA expires? According to the Post, the price increases — affecting up to 17 million Americans who buy coverage on the federal marketplace — are by far the most significant annual premium increases in recent years.

No ACA Extension means premiums soar for millions. When the tax credits expire, annual out-of-pocket premiums are estimated to increase a soaring 114% — an average of $1,016 — next year, according to the KFF analysis. For example, an individual earning $28,000 might see their annual premium payment increase from approximately $325 to over $1,560 without the enhanced credits.

More than 24 million people have ACA health insurance, including farmers, ranchers, small business owners, and other self-employed people who don’t have employer-sponsored health insurance.

The old ACA-enhanced premium tax credits are set to expire this year. They have made costs far more manageable for many enrollees, allowing some lower-income enrollees to get health care with no premiums and higher earners to pay no more than 8.5% of their income.

While some premium tax credits will remain, the level of support will decrease for most enrollees. Anyone earning more than 400% of the poverty level — or around $63,000 per year for a single person — won’t be eligible for the remaining tax credits.

As a result, especially hard-hit groups will include a small number of higher earners who’ll have to pay a lot more without the extra subsidies and a large number of lower earners who’ll have to pay a small amount more, said Cynthia Cox, a vice president and director of the ACA program at KFF.

With higher premiums, some people will drop out of health insurance altogether, Cox said. When many younger, healthier people inevitably forgo coverage, insurance companies will increase costs for members of the covered population to account for their older, sicker status.

The change may also strain hospitals, since more uninsured people will need emergency care they can’t afford. That could lead to hospital closures or cost increases.

“If you have fewer subsidies for people getting health insurance, you’re going to have less health coverage and less health care,” said Jason Levitis, a senior fellow in the health policy division at the Urban Institute. “People are going to be sicker and die more.”

Even if Congress does extend, the delay could have consequences

What devastation will come when the ACA expires?

Obamacare premiums (ACA)are set to rise 30 percent

The ACA tax credits are at the heart of the federal government shutdown.

No ACA extension means premiums soar for millions.

As many as 4 million people could become uninsured

Health policy analysts note that even if subsidies are extended, Americans under the ACA (originally known as Obamacare) are now facing 2026 rate hikes that are already higher because insurers had to factor in the potential expiration when they set premium prices earlier this year.

Since the introduction of the enhanced premium tax credits, enrollment in the Marketplace has more than doubled from about 11 to over 24 million people, the vast majority of whom receive an enhanced premium tax credit. If enhanced tax credits expire, many Marketplace enrollees will continue to qualify for a smaller tax credit. In contrast, others will lose eligibility altogether and face a “double whammy”: losing their entire tax credit and being on the hook

WHAT CAN YOU DO?

What can you do? Contact your Congressman and tell her or him that you do not agree with these cuts. Go to a town meeting if your congressman holds one. Join Indivisable. Together, we can solve this crisis in our democracy.

To find out more about Cathy Cress, MSW, the author, click here