A new analysis published by the nonpartisan Center on Budget and Policy Priorities (CBPP) found that out-of-pocket premium payments will more than double if the enhanced premium tax credits expire.
According to CBPP’s projections, annual out-of-pocket premium payments would more than double, exceeding $1,000 on average if the credits aren’t extended. Open enrollment for Affordable Care Act (ACA) Marketplace plans begins this Saturday.
“Since Congress has not acted sooner and many enrollees likely have already experienced sticker shock and decided not to enroll, it should also extend the open enrollment period (scheduled to end January 15 in most states) to give people more time to sign up,” the CBPP said.
The analysis predicted “dramatic” premium spikes in states like Tennessee, Wyoming and West Virginia, which already have high underlying marketplace premiums. The group also anticipates spikes for older individuals who already pay higher premiums, as well as for people with incomes above 400 percent of the poverty level.
As other health policy groups have warned, CBPP reiterated that the end of the enhanced tax credits would undo the progress made in reducing uninsurance rates. The health policy nonprofit KFF similarly estimated last month that annual premiums would increase by 114 percent on average if the credits expire.
Loss of coverage and increases in premiums would be concentrated among people with lower incomes, according to the analysis. An individual making $22,000 annually, or 140 percent of the federal poverty level, is no longer eligible for zero-premium silver plans.
As of this week, Senate Democrats have blocked a House-passed bill to reopen the government for the 13th time, refusing to budge without an extension to the tax credits. Republicans have yet to provide an alternative health plan, with Sen. Bernie Moreno (R-Ohio) saying Wednesday that it would take “three or four months” to reach consensus.
This ongoing stalemate has led to fractures in both parties, with Rep. Marjorie Taylor Greene (R-Ga.) criticizing her party for its approach to the expiring credits and Democrats like Sen. John Fetterman (D-Penn.) supporting GOP efforts to end the shutdown.
