Open enrollment opens Friday for health plans under the Affordable Care Act of 2025, but next year’s plans will be even more expensive for consumers unless Congress and the president-elect agree to extend pandemic-era subsidies. There is a possibility.
Enhanced subsidies for ACA plans began in 2021 under the American Rescue Plan, a COVID-19 relief law, and were extended through 2025 with the passage of President Biden’s Inflation Control Act in 2022. Ta.
Since the ACA first went into effect in 2013, it has always included subsidies to help consumers defray premiums and other costs. But a newer, expanded subsidy that protects enrollees from a portion of their premiums and expands eligibility to wealthier Americans is set to expire next year. Unless Congress takes action to extend them again.
Hilary Schneider, director of the Maine Department of Health Insurance Marketplaces, said at a recent press conference that if the subsidies are allowed to lapse, “thousands of Mainers could end up uninsured because it’s too expensive.” It will happen,” he said.
About 62,500 Maine residents have insurance through the ACA, and the Congressional Budget Office estimates that enrollment will decline by 17% in 2026 if the subsidies expire. This means that enrollment in Maine is projected to decline to about 52,000 students in 2026, while national enrollment will drop from 22.8 million in 2025 to 2026. This will drastically reduce the number of people to 18.9 million.
To sign up for a covered plan starting in January, visit: www.coverme.gov. Registration begins Friday and runs until January 15th, but CoverME.gov The website allows consumers to preview available plans.
If the subsidy is not extended, premiums will rise in 2026. The amount will vary widely depending on many factors, including the type of plan you choose, your age, income, and family size, but on average your premiums will increase hundreds of times. dollar. The enhanced subsidies now mean plans cost an average of $705 less per year, according to an analysis by KFF, a health policy think tank.
Premium prices vary, but many miners can get individual plans for around $100 to $300 per month.
Frank Wu, co-founder of Taro Health, an insurance company that offers plans in Maine’s marketplaces in Cumberland, York, Lincoln and Sagadahoc counties, said the subsidy expiration is “a threat to market residents.” He said that.
“Most people will experience a direct increase in their out-of-pocket costs,” Wu said. “Some people may see premium increases and choose to go uninsured.”
The fate of the subsidies could depend on the outcome of the federal election. Republicans have generally become increasingly hostile to the ACA, with former President Donald Trump hinting that he could try again to repeal and replace the ACA’s legislative accomplishment. Obama administration.
Meanwhile, Democrats, including Vice President Kamala Harris, typically support the ACA and expanded subsidies. A bill being considered in Congress would make the enhanced subsidies permanent.
Sen. Susan Collins (R-Maine) is a notable exception among Republicans in that she has joined Democrats in opposing repeal of the ACA. Collins was one of three Republican senators who voted to keep the ACA in place during the 2017 repeal attempt, which failed by one vote.
In response to questions from the Press Herald, Collins spokeswoman Annie Clark said Collins believes Congress should consider “the appropriate level of subsidy and its cost.” She supports reforming the ACA, but not repealing it. ” Collins also voted against the Anti-Inflation Act, which includes the American Rescue Plan and subsidies, among many other priorities of the Biden administration.
Meanwhile, U.S. Sens. Angus King and I Mayne, and Democratic Reps. Cherry Pingree and Jared Golden said this week in response to questions from the Press Herald that they support extending the aid.
“Congressman Golden supported extending the IRA premium tax credit because of its success in reducing health insurance costs for Miners, and he supports re-extending it,” Golden spokesman Mario Moretto said. Ta.
“When these credits expire, families will face premiums they cannot afford, especially in rural areas where access to health care is already limited,” Pingu said in a statement.
Schneider said many Maine households, the self-employed and small business owners rely on the ACA for affordable and predictable coverage.
For small business owners, when subsidies expire, the funds can no longer be used to invest in their companies, making it more difficult to grow their businesses and hire employees. Losing subsidies would have ripple effects throughout the economy, he said.
“When insurance premiums eat up a large portion of a household’s budget, there is less money available for things like services, groceries, and discretionary items,” Schneider said.
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