Millions of Americans are facing uncertainty about their health insurance due to delayed decisions on Affordable Care Act (ACA) subsidies. The proposed deal to end the government shutdown would push any congressional decision on ACA subsidies to December, leaving those navigating open enrollment in limbo. Without these subsidies, the cost of ACA insurance plans could skyrocket in the new year, with some premiums potentially doubling or quadrupling.
President Donald Trump has suggested taking the money for the subsidies and giving it directly to Americans’ personal health savings accounts. However, experts argue that this approach would not provide adequate support for those who rely on ACA subsidies. Sabrina Corlette, co-director of Georgetown University’s Center on Health Insurance Reforms, notes that the extra money would not be useful without underlying insurance, which millions of Americans could lose if ACA subsidies aren’t extended.
The Congressional Budget Office estimates that close to 4 million people would become uninsured if ACA subsidies are not extended. Corlette warns that this could lead to a “premium death spiral,” where healthy people drop their coverage, and sicker people are left with increasing costs. The proposed bipartisan deal to reopen the government includes a Senate vote on the subsidies next month, but the House has made no such promises.
Corlette advises those trying to figure out their healthcare plans to be aware of deceptive marketing tactics by “bad actors” who may try to sell fake or inadequate insurance. She also recommends not waiting to enroll in a marketplace plan, as tax credits will be applied retroactively to those who qualify, even if they have already enrolled.
The Senate has promised a vote on the subsidy extension by the end of the second week of December, if the bill to reopen the government passes. Meanwhile, millions of Americans, including working people, small business owners, and gig economy workers, are left uncertain about their healthcare coverage. Corlette emphasizes that these individuals are not just statistics, but people who are “out there working for a living” and need access to affordable healthcare. The delay in subsidy decisions has significant implications for their financial security and well-being.