Health Insurance Premiums Soar: Shutdown's Devastating Impact on Families and Small Businesses

Largest-Ever Spike in Health Insurance Premiums Looms as Shutdown Continues As the federal government enters its ninth day of shutdown, hundreds of thousands of workers remain unpaid, small businesses are unable to access loans, and the future of Supplemental Nutrition Assistance Program (SNAP) benefits hangs in the balance. Amidst this chaos, a looming crisis is unfolding: soaring health care costs that could leave tens of millions of Americans without insurance. According to estimates from the Congressional Budget Office (CBO), if Congress fails to extend tax credits for Affordable Care Act (ACA) subsidies by year's end, premiums are projected to skyrocket by as much as 20% in some states. This would mark the largest-ever increase in health insurance premiums since the ACA was enacted. "We've never seen a projected increase of this magnitude," said Dr. Sara Collins, Vice President for Health Care Coverage and Access at the Commonwealth Fund. "This is a critical issue that requires immediate attention from policymakers." The tax credits, which subsidize premiums for tens of millions of qualifying individuals, are set to expire on December 31st unless Congress acts to extend them. Without these subsidies, many Americans will be forced to choose between paying exorbitant premiums or going without insurance altogether. "This is a perfect storm of bad policy and politics," said Senator Chris Murphy (D-CT), who has been leading efforts to extend the tax credits. "We need to get this done for the American people." The consequences of inaction will be dire, with more Americans likely to become uninsured and requiring government funding for uncompensated care. This would not only exacerbate existing health disparities but also drive up costs for taxpayers. As the shutdown continues, health advocates are urging lawmakers to prioritize the extension of tax credits and other ACA provisions that have expanded access to healthcare for millions of Americans. "We need a comprehensive solution that addresses the root causes of these skyrocketing premiums," said Dr. Leana Wen, former Commissioner of Health for Baltimore City. "This includes investing in community-based care, addressing social determinants of health, and promoting preventive care." As the situation unfolds, experts recommend that individuals and families take proactive steps to prepare for potential premium increases: Review existing insurance plans and explore options for affordable coverage Consult with healthcare professionals about preventive care and wellness strategies Advocate for policy changes that prioritize access to affordable healthcare The fate of these tax credits remains uncertain as lawmakers continue to negotiate a continuing resolution. As the clock ticks down, one thing is clear: the consequences of inaction will be far-reaching and devastating. Background: The Affordable Care Act (ACA) was enacted in 2010 with the goal of expanding access to healthcare for millions of Americans. Key provisions include tax credits that subsidize premiums for qualifying individuals and families. These subsidies are set to expire on December 31st unless Congress acts to extend them. Attributions: Dr. Sara Collins, Vice President for Health Care Coverage and Access at the Commonwealth Fund Senator Chris Murphy (D-CT) Dr. Leana Wen, former Commissioner of Health for Baltimore City Sources: Congressional Budget Office (CBO) estimates Mother Jones illustration Chip Somodevilla/Getty *Reporting by Motherjones.*