Key Takeaways:
- Over 90% of Affordable Care Act (ACA) marketplace enrollees rely on expiring COVID-era tax credits to pay for health insurance premiums.
- If these tax credits are not extended, most enrollees will face significant increases in their health insurance costs, with the average subsidized enrollee seeing their monthly payments more than double.
- A new survey from the Kaiser Family Foundation (KFF) finds that most ACA marketplace enrollees are already struggling to afford health expenses, with 6 in 10 finding it "somewhat" or "very" difficult to afford out-of-pocket costs for medical care.
- There is bipartisan support for extending the tax credits, with nearly all Democrats, 8 in 10 independents, and 7 in 10 Republicans who are enrolled in marketplace plans saying the credits should be extended.
Introduction to the Crisis
The Affordable Care Act (ACA) marketplace has been a lifeline for millions of Americans who rely on it for health insurance. However, the program is facing a crisis as COVID-era tax credits that help make health insurance more affordable are set to expire at the end of the year. For people like Dinam Bigny, a 52-year-old program manager in Virginia, the expiration of these tax credits would mean a significant increase in his health insurance premiums, from nearly $900 per month to over $1,100 per month. This increase would be unsustainable for Bigny, who has already drained his savings and is struggling to make ends meet.
The Impact of Expiring Tax Credits
The expiration of the tax credits would have a devastating impact on the millions of Americans who rely on the ACA marketplace for health insurance. According to a new survey from the Kaiser Family Foundation (KFF), most enrollees are already struggling to afford health expenses, with 6 in 10 finding it "somewhat" or "very" difficult to afford out-of-pocket costs for medical care. The survey also found that most enrollees would face significant increases in their health insurance costs if the tax credits are not extended, with the average subsidized enrollee seeing their monthly payments more than double. This would be a catastrophic blow to many families who are already living paycheck to paycheck.
The Human Cost of Inaction
The human cost of inaction on the part of Congress would be significant. People like Larry Griffin, a 56-year-old investment banker and financial adviser in California, would see their health insurance premiums increase from $920 per month to over $1,400 per month. Griffin, who has already had to deal with significant health issues, including the amputation of his left leg, would be forced to choose between paying for health insurance and saving for retirement. Similarly, Patricia Roberts, a 52-year-old full-time caregiver for her daughter in Alabama, would see her monthly health insurance premiums increase from $800 to $1,100 per month. Roberts is concerned about how her friends in Georgia, who are facing even larger increases, would be able to afford health insurance.
Bipartisan Support for Extension
Despite the partisan gridlock in Washington, there is bipartisan support for extending the tax credits. The KFF survey found that nearly all Democrats, 8 in 10 independents, and 7 in 10 Republicans who are enrolled in marketplace plans say the credits should be extended. This support stretches across party lines, with even some Republicans who support the MAGA movement saying that the credits should be extended. Yvette Laugier, a 56-year-old Republican in Chicago, said that while she does not qualify for the tax credits, she supports extending them temporarily to give lower-income enrollees more time to consider their options.
The Need for Compromise
As the deadline for extending the tax credits approaches, there is a growing sense of urgency among ACA marketplace enrollees. Bigny, who is struggling to make ends meet, said that he hopes Congress can come to a compromise and extend the tax credits, at least temporarily. "They should just sit and really look for what’s best for American people overall," he said. With the fate of the tax credits hanging in the balance, it remains to be seen whether Congress will be able to come together and find a solution that works for all Americans. One thing is certain, however: the expiration of the tax credits would have a devastating impact on the millions of Americans who rely on the ACA marketplace for health insurance, and it is imperative that Congress takes action to prevent this from happening.
