Millions Face Soaring Health Insurance Costs Without Congressional Action

Senate Minority Leader Chuck Schumer Warns of Rising Health Insurance Costs WASHINGTON — Senate Minority Leader Chuck Schumer warned Wednesday that millions of Americans are on the verge of receiving letters in the mail informing them that their health insurance costs will skyrocket unless Congress extends tax credits that have kept premiums affordable since the COVID-19 pandemic. The tax credits, which were first introduced in 2021 and extended a year later, provide subsidies to low- and middle-income individuals who purchase health insurance through the Affordable Care Act. The credits are set to expire at the end of the year, and Schumer, D-N.Y., said that if they do not get an extension, millions will start receiving letters from their insurance providers informing them of the impending price hike. "This is a disaster waiting to happen," Schumer said in a statement. "Millions of Americans who have been able to afford health insurance because of these tax credits will be hit with massive premium increases." Schumer's warning comes as Congress grapples with how to extend the tax credits, which have bipartisan support but are facing opposition from some Republicans who have long opposed the Affordable Care Act. The issue has become a contentious one in Washington, with Democrats threatening to vote to shut down the government at the end of the month if Republicans do not agree to extend the subsidies. Senate Majority Leader Mitch McConnell, R-Ky., has expressed skepticism about extending the tax credits, saying that they are "not sustainable" and would require significant funding. However, some Republicans who have opposed the Affordable Care Act since its inception under President Barack Obama are now open to keeping the tax credits. Senator Susan Collins, R-Maine, said in a statement that she is willing to work with Democrats to find a solution that extends the subsidies while also addressing concerns about their long-term sustainability. "We need to make sure that people who rely on these tax credits can continue to afford health insurance," Collins said. "I'm willing to work with my colleagues to find a solution that works for everyone." The current status of the issue is uncertain, but Schumer has vowed to keep pressure on Republicans to extend the tax credits. "We will not back down from this fight," Schumer said. "We will continue to push for an extension of these tax credits until we get one." Background and context: The Affordable Care Act was enacted in 2010 under President Barack Obama. The tax credits were first introduced in 2021 as part of a COVID-19 relief package. They were extended a year later when Democrats controlled Congress and the White House. Additional perspectives: Senator McConnell has expressed skepticism about extending the tax credits, saying they are "not sustainable" and would require significant funding. Some Republicans who have opposed the Affordable Care Act since its inception under President Obama are now open to keeping the tax credits. Next developments: The issue is expected to come to a head in the coming weeks as Congress grapples with how to extend the tax credits. Schumer has vowed to keep pressure on Republicans to extend the subsidies, and Democrats are threatening to vote to shut down the government at the end of the month if they do not get an extension. *Reporting by Fortune.*