The number of Americans signing up for Affordable Care Act (ACA) health insurance plans has decreased by 3.5% compared to the same time last year, with around 800,000 fewer people selecting plans. This decline is attributed to the expiration of enhanced tax credits, which has led to higher health expenses for many individuals. As a result, some people are being forced to make difficult decisions, such as delaying or forgoing health insurance altogether.
The new data, released by the Centers for Medicare and Medicaid Services, shows that enrollment has dropped to around 22.8 million people, down from 24 million last year. This decline is the first time in four years that enrollment has decreased from the previous year at this point in the shopping window. The loss of enhanced subsidies means that annual premium costs will more than double for the average ACA enrollee, making it unaffordable for many.
The expiration of subsidies has sparked a partisan battle in Congress, with Democrats pushing for a straight extension of the tax credits and Republicans insisting on larger reforms to root out fraud and abuse. The House has passed legislation to extend the subsidies for three years, but the bill is now stalled in the Senate. The Congressional Budget Office estimates that extending the subsidies would increase the nation’s deficit by $80.6 billion over the decade.
As a result of the declining enrollment, some Americans are being forced to explore alternative options, such as going on a partner’s employer health plan or changing their income to qualify for Medicaid. Others are choosing to go without insurance, at least temporarily, while they look for alternatives. Health economist Robert Kaestner predicts that 2 million more people will lack health insurance for a while, which is a serious issue.
Many Americans are struggling to afford health insurance, with some dropping coverage altogether. Felicia Persaud, a 52-year-old entrepreneur from Florida, dropped her coverage when her monthly ACA costs were set to increase by $200. She is now going without health insurance, hoping that she won’t be affected by a costly injury or diagnosis. The decline in enrollment and the expiration of subsidies have significant implications for the healthcare system, and it remains to be seen how Congress will address the issue.