Couple Faces Nearly $2,000 Increase in Insurance Premiums Without Obamacare Subsidies
In late September 2023, Laurel Vincenty received a concerning notification from Blue Cross Blue Shield. The letter informed her that the subsidies significantly reducing her health insurance costs would expire at the end of the year. This news threatens to increase her monthly premiums drastically.
Laurel, 64, and her husband Philip, 62, reside in North Carolina. They are self-employed and currently pay approximately $400 monthly due to coverage under the Affordable Care Act (ACA). The soon-to-expire subsidies cover an additional $1,700, making them crucial for their financial health.
The couple faces mounting medical expenses since Laurel’s breast cancer diagnosis in 2020 and Philip’s heart attack in 2024. They are left managing significant medical debt alongside costs for essential monthly medications.
Impact of Expiring Subsidies
Laurel is taking on a second job, hoping to mitigate the financial strain from the expected rise in insurance premiums. “It’s frustrating to think about losing our subsidies,” she stated. “We are unsure how we will afford health insurance moving forward.”
The current situation of the Vincentys highlights a larger issue tied to the expiration of ACA subsidies. These subsidies were initially introduced through the American Rescue Plan in 2021 and later extended by the Inflation Reduction Act in 2022. Without an extension, many individuals enrolled in ACA plans may see average premium payments nearly double.
Government Discussions and Expected Changes
As open enrollment begins on November 1 across most states, many enrolled in ACA plans have begun receiving notifications about next year’s premiums. An analysis by KFF indicates that without the subsidies, the average yearly out-of-pocket premium will jump from $888 to $1,904.
- Date of letter: Late September 2023
- Current premium: Approximately $400/month
- Amount covered by subsidies: $1,700/month
- Expected premium increase without subsidies: $1,904/year
Lawrence Gostin, director of the O’Neill Institute for National and Global Health Law, expressed concern that even if a solution is reached, many enrollees may still exit due to high costs. “Sticker shock” will deter some individuals from renewing their plans.
Challenges in Navigating ACA Options
As the open enrollment period approaches, many marketplace enrollees can expect challenging updates. According to Adrianna McIntyre, a health policy professor, people may receive notifications about upcoming premium increases. Those reconsidering their plans may face higher deductibles if switching to lower-cost options.
Currently, about 24 million individuals are enrolled in ACA plans, with roughly 90% receiving enhanced subsidies. Analysts project that if these subsidies lapse, nearly 4 million individuals could lose coverage in 2026.
Personal Accounts of Premium Concerns
Individuals across the country are voicing similar concerns. Jeff Feldman, a 60-year-old musician from Phoenix, received notice from HealthCare.gov indicating that his cost for health insurance could triple. His monthly premium is expected to increase from $300 to $900. He mentioned the prospect of going uninsured next year.
Wesley Hartman, a resident of Chatsworth, California, has similar worries. He recently received a letter indicating that his family’s premium would rise from $1,212 to $1,450. While he can absorb this increase, it will significantly impact his ability to invest in his growing IT business, which he finds discouraging.
These narratives exemplify the broader financial implications of the upcoming changes to health insurance premiums without the support of ACA subsidies. As families brace for these challenges, critical discussions about potential extensions continue amid ongoing government negotiations.
