As Shutdown Drags On, Is a Compromise Over Health Care Costs Possible?

Vidya Sethuraman
India Post News Service

At the heart of the federal government shutdown, which began October 1, are the spiraling costs of healthcare. Millions of Americans this month are set for sticker shock as they see their monthly Affordable Care Act premiums nearly double, once enhanced premium tax credits expire at the end of the year. ACom news briefing on Oct 10, highlighted this imperative issue.

4 million people will immediately lose coverage. 7 out of 10 Americans surveyed in a new poll say they will not be able to afford higher-cost health care, without seriously impacting their household budget. And very low-income people stand to lose their $0 monthly premium. The cuts come in amid new rules and restrictions for Medicaid recipients. In total, as many as 12 million Americans stand to lose health care coverage.

Anthony Wright, Executive Director, Families USA pointed out that the current impasse is rooted in changes in federal tax policy. Since the enhanced premium subsidy is about to expire at the end of the year, policyholders will face the “largest increase in history” when the open registration period arrives on November 1. He said average premiums will rise by 18%, and may double or even triple in some areas. For a person with an annual income of $65,000, the premium will jump from $460 to $1,400 per month, which is tens of thousands of dollars more a year. Congress and the administration chose not to extend the subsidy, which is equivalent to letting millions of people fall out of the insurance system, causing the risk pool to shrink and premiums to rise again, forming a vicious cycle. Wright specifically reminded that if 4 million people lose insurance, not only will individuals suffer, but rural hospitals and community clinics will also be in financial crisis due to an increase in non-paying patients.

Jennifer Sullivan, Director of Health Coverage Access and lead for the Beyond the Basics project at the Center for Budget and Policy Priorities said that 93% of insurance market enrollees in the United States rely on tax subsidies, and nearly half have annual incomes less than twice the federal poverty line. If the zero-dollar premium is eliminated, research shows that 400,000 people will immediately lose insurance. She pointed out that since the subsidy was expanded in 2021, the insurance coverage rates of African Americans and Hispanics have increased by 186% and 158% respectively; if the subsidy is suspended, these groups will be the first to bear the brunt and return to pre-pandemic levels.

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