The Affordable Care Act (ACA), also known as Obamacare, is currently at the center of a government shutdown. Democrats are fighting to extend tax credits that help people pay for health care through the ACA exchanges, warning that without these subsidies, health care costs would skyrocket for millions of people. As the open enrollment period for 2025 begins, some individuals have started “window shopping” for health insurance plans, and some may see significant increases in their premiums.
Lynn Chernin and Laura Reynolds, two individuals from Tampa, Florida, who currently have ACA plans, were able to view their estimated costs for next year. Chernin’s premium would only increase by about $1 a month, while Reynolds’ premium would jump to over $450 a month, a huge increase from her current $0 premium. Although Reynolds’ new premium is higher, it is still less than what she paid before switching to an ACA plan.
Cynthia Cox, a researcher on the Affordable Care Act for the nonprofit KFF, estimates that on average, most Americans will see their ACA health insurance premiums more than double, with a 114% jump. However, some individuals may not see significant increases in their premiums, and others may be able to mitigate costs by switching to a different plan, such as a bronze plan with a lower premium but a higher deductible.
The longer the government shutdown continues, the more damage it could cause to the health insurance market. Insurers are concerned that people may be scared away by the big premium increases and drop their coverage, leaving them with a sicker average group of people and higher costs. However, there is still time for Congress to make a change and extend the tax credits before they expire on December 31.
Cox advises individuals shopping for ACA marketplace insurance to wait a few weeks to see if a deal is made, and to decide on a health plan before December 15 to lock it in for January 1. She also recommends contacting insurance agents or brokers and making appointments now, as they will be busy this year. Ultimately, the fate of the ACA and the tax credits remains uncertain, and individuals will have to wait and see how the situation unfolds.