Millions face higher health insurance costs as ACA subsidies expire
Millions of Americans are bracing for higher health insurance costs as expanded Affordable Care Act subsidies expire at the end of the year.
(NBC)- Millions of Americans are bracing for higher health insurance costs as expanded Affordable Care Act subsidies expire at the end of the year — a change that could significantly impact household budgets nationwide.
Joseph D’Eramo, a self-employed man in his early 60s recently diagnosed with diabetes, says the rising costs are already taking a toll.
“So a lot more things are on my mind about health care than, say, a year ago,” D’Eramo said.
He buys his health insurance through the Affordable Care Act, commonly known as Obamacare, and says his premiums are set to increase by 15 percent in the new year.
“It’s a lot bigger than my car payment,” D’Eramo said. “It’s between my car payment and rent. And it’s getting closer and closer to the rent.”
D’Eramo is among more than 20 million Americans facing higher health insurance costs after Congress failed to extend or reform premium subsidies that were put in place during the pandemic and are set to expire.
According to a Kaiser Family Foundation analysis, a family of four earning $40,000 or less could see their annual premiums increase by more than $800. Families making over $90,000 could see costs jump by nearly $4,000 a year.
Republican Congressman Mike Kennedy of Utah, who is also a physician, says concerns over rising premiums are being overstated and argues the Affordable Care Act needs significant reform.
“I want to make sure that those people have excellent access to high-quality health care, which I and people like me as doctors have been delivering for many years in the Obamacare process,” Kennedy said.
However, some lawmakers on both sides of the aisle say immediate action is needed. Moderate Republicans and Democrats are pushing for a short-term extension of the subsidies while long-term health care reforms are negotiated.
“This is what the people want,” said Representative Tom Suozzi of New York. “The number one issue in America is affordability, and affordability of health insurance is right there at the very top.”
For D’Eramo, the uncertainty is stressful, but he says he’s preparing for the worst.
“I refer to it as the ‘don’t get sick’ health plan,” he said. “So basically, stay healthy. And thankfully, you know, despite my conditions, I’m pretty healthy.”
While the subsidies are set to expire at the start of the new year, the Kaiser Family Foundation says that if Congress reaches a deal at any point in 2025, millions of Americans could still see relief.
