ACA Subsidy Expiration Threatens Millions With Unaffordable Healthcare
The future of healthcare affordability is in jeopardy as enhanced subsidies for Affordable Care Act (ACA) plans are set to expire at the end of the year. The U.S. federal government, under the Biden administration, had extended these subsidies in 2021 and 2022 as part of COVID-19 relief measures. Now, their expiration could significantly impact millions of Americans.
Without an extension, average out-of-pocket premium payments could double in 2026. A staggering 7 in 10 people who purchase their own insurance say they would struggle to afford these increased premiums without significantly cutting back on their household budgets. The financial burden is immense, with about 4 in 10 people with an ACA plan stating they would go without insurance if their premiums nearly doubled.
The expiration of these subsidies is projected to leave around 4 million people without coverage next year. The cost to the federal government for extending the enhanced subsidies is estimated at around $350 billion over the next decade. Despite the financial implications, the public overwhelmingly supports their extension, with 78% in favor. This support is bipartisan, with majorities of Democrats (92%), independents (82%), and even Republicans (59%) and 'Make America Great Again' supporters (57%) backing the move. More than 22 million people currently receive these enhanced subsidies.
The expiration of enhanced ACA subsidies threatens to leave millions uninsured and increase financial strain on those who remain insured. With broad public support, including across party lines, extending these subsidies is a crucial step to maintain affordable healthcare. Congress is urged to act promptly to prevent a potential healthcare crisis.
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