Health Subsidies at Risk: What's Next for Affordable Care Act?

The government shutdown might be ending, but a significant question mark looms over health care subsidies. The deal to reopen the government does not include a plan for the Affordable Care Act (ACA) tax credits that help millions afford health insurance. These credits are set to expire at the end of the year, with no guarantee of extension.

Key Points of the Deal

• No Immediate Plan: The deal promises only a vote in December on these subsidies.
• Uncertainty: The House Speaker hasn't agreed to the vote.
• Divided Opinions: Democrats push for a temporary fix, while Republicans are hesitant.
• Alternative Proposals: Some Republicans, including the President, advocate for letting subsidies expire and exploring other options, such as health savings accounts.

Potential Impact

• Increased Costs: Without subsidies, many people will see their health insurance costs double.
• Higher Earners Hit Hardest: Although lower earners will also feel the impact.
• Insurance Market Instability: Over time, insurance companies may raise prices as healthier individuals drop coverage, leading to more uninsured Americans and straining hospitals and the government.

Real-World Examples

• Pennsylvania Hair Stylist: Her monthly premium will jump from $160 to $260 next year, with an increased deductible. Without subsidies, many might find health insurance unaffordable.

Public Support and Future Actions

• Public Opinion: Most Americans support extending the subsidies, according to a recent poll.
• Potential Extensions: Even if subsidies expire, Congress might extend them later, but it could be too late for some who have already adjusted to higher prices.
• Alternative Solutions: The President suggests giving savings directly to people, while some senators propose health savings accounts. However, these ideas are still in early stages, and their effectiveness is unclear.