Insurers have increased rates significantly for next year — an average of about 26 percent for a typical plan in the 30 states where the federal government runs the marketplace, and an average of 17 percent in states that run their own exchanges, according to a new analysis from KFF.
But the biggest impact on Americans will be the amount they have to pay for coverage if the Affordable Care Act’s enhanced subsidies expire at the end of the year, unless Congress extends them.
KFF found that payments will rise by 114 percent on average if Congress doesn’t act. Democrats have leaned heavily on expanding the subsidies as part of their challenge to the GOP-led continuing resolution that would reopen the government after funding lapsed nearly a month ago.
The subsidies made health insurance effectively free for the lowest income people and extended financial assistance for the first time to people earning up to four times the federal poverty level.
More than 90 percent of enrollees will still receive some financial help even if the enhanced subsidies expire at the end of the year. But those tax credits could mean the difference between affording a silver plan with low deductibles or the lowest-cost bronze plan with a deductible that could be thousands of dollars more.
“There can be a lot of hair pulling and scratching, mudslinging, but the fundamental reality for most Americans is that, although it is an increase in spending, that’s not the big issue,” Dr. Mehmet Oz, the administrator for the Centers for Medicare and Medicaid Services, said at a press conference on Wednesday.
