Temporary health insurance subsidies through the Affordable Care Act are about to expire for next year. Without an extension, health insurance costs will skyrocket, and millions of Americans will become uninsured.
As explained in an article by The Hill, “The American Rescue Plan signed by President Biden last year temporarily increased financial assistance under ObamaCare, but that increase is set to expire at the end of this year, causing an increase in [2023] premiums for enrollees in the health law unless Congress acts.” The report continued, “Notices about the premium increases would be sent out shortly before the midterm elections, adding political pain for Democrats in addition to the higher premiums for consumers.”
If Congress fails to extend tax credits, premiums will skyrocket, with 3 million people at risk of losing coverage. Premium increases will be widespread, with insurers pursuing double-digit increases affecting 9 million Americans.
Failing to extend these tax credits will also aggravate existing geographical and racial disparities, particularly in rural states like West Virginia, where premiums are already an average of 10% higher than in urban areas.
On top of heavy inflation impacting consumers at the grocery store, gas pump, and more, millions of Americans will receive a notice in the mail in October that their ACA premiums will rise significantly.
