As we approach the end of the year, millions of Americans are wondering what the future holds for their healthcare if they have coverage at all. Federal subsidies that are the backbone of health care support in the Commonwealth are poised to expire. With this upcoming change, migraine advocates worry about dramatic hikes in premiums. That uncertainty has fueled anxiety between legislators, especially between Republican and Democrat members of Congress, as the impact of that law starts to materialize.
Republicans go to great lengths to justify the cuts to these subsidies here. They contend that these requirements are needed to combat waste, fraud, and abuse of federal money. If these subsidies aren’t renewed by mid-November, millions of people will see a sticker-shock hike. Their health insurance premiums might skyrocket by 100 percent. This forthcoming jump would affect an estimated 4 to 5 million people, who will lose their free coverage altogether.
Those most severely affected will almost certainly be the low-income, uninsured residents of 10 states that have so far chosen not to expand their Medicaid eligibility. For too many Americans, the financial reality is grim. News reports suggest that some people may see their monthly premiums for coverage go up by several hundred dollars as soon as November 1.
Stacy Cox is a Wisconsin-based entrepreneur who recently opened her photography studio. Wenstrup weighed into the debate early to air fears that some tax credits might expire. She described the profound impact these subsidies have had on her life.
“It is an absolute lifeline for so many of us,” – Stacy Cox
Thanks to these subsidies, Cox has saved more than $10,000 a year since she started accepting them in 2022. Without the tax credits, she will likely have to close her business. Perhaps now she will have to take a job with health insurance coverage. Estimates suggest that around 7 million people like Cox may cease purchasing health insurance through the marketplace if the credits are not extended.
Like their counterparts in Wisconsin, families are dangerously concerned about how they will cover skyrocketing expenses. Shana Verstegen, a parent of two who has testified against the privatization scheme, said she was upset by the possible new financial burden.
“Everything’s getting more expensive now anyway, and this would be another major hit for our family,” – Shana Verstegen
The ongoing situation has been enough to raise concern on both sides of the aisle by legislators. Perhaps the most surprising backer of extending the tax credits is Rep. Marjorie Taylor Greene (R-GA). She is a longtime, doggedly loyal ally of former president Donald Trump. She reiterated her concern that premiums could double without the credits.
“I’m absolutely disgusted that health insurance premiums will DOUBLE if the tax credits expire this year,” – Representative Marjorie Taylor Greene
On the legislative front, Republican Senator Lisa Murkowski has introduced a bill aimed at extending these crucial tax credits for an additional two years. Others Republicans think the fight over subsidies should be postponed. They note that these subsidies aren’t set to expire until the new year begins. As Democrats do, they’ve interpreted this very clearly. They’ll oppose any spending agreement that reopens the government without renewing the subsidies.
Leighton Ku, a health policy expert, didn’t pull any punches when describing the implications of the loss. He warned of the dire consequences for millions of Americans who depend on marketplace insurance.
“If you are one of the 20 or so million people who’s getting your health insurance through the marketplace, if you’re about to see prices on average double, that’s a big deal,” – Leighton Ku
Ku also cautioned that if subsidies are not extended, the health insurance premium market may enter a “death spiral.” Less healthy people will be forced to drop out due to increasing costs. Consequently, the people left in the marketplace would experience even higher increases on their insurance premiums.
“You start to get into a death spiral where premiums become even more expensive and more out of reach for more people,” – Elizabeth Fowler
In closing, Ku points to a political paradox. The states most likely to be affected by the proposed subsidy cuts are some of the most conservative strongholds.
“One of the political paradoxes of all this is that the places that get hurt the most are states that are more conservative,” – Leighton Ku
As negotiations drag on in Washington though, millions of Americans are left in uncertainty about their healthcare futures and can’t afford to wait. The stakes could not be higher for the more than 19 million people who depend on these critical subsidies to access their health care.
Shana Verstegen, from Sheboygan, told the panel that frustration over rising healthcare costs could play a decisive role in the next election cycle.
“I truly believe that if this goes away next year, a lot of people are going to be very upset, and that’ll show up in elections,” – Shana Verstegen
There’s not much time left. It’s anyone’s guess at this point as to whether legislators will come together to renew these critical tax credits, not allow them to clock out at midnight. With the cost of healthcare poised to skyrocket, millions are still left waiting for answers about their coverage and financial prospects.