PHOENIX (AZFamily) — Arizona families are wondering whether they’ll be able to afford health insurance coverage next year as the government shutdown has created confusion about the cost of health plans offered through the Affordable Care Act (ACA).
Open enrollment for ACA plans starts Saturday, but it’s still unclear what these health insurance plans will cost. Close to 400,000 people across the state are expected to sign up for a health plan through the Affordable Care Act beginning Nov. 1.
The current government shutdown has created uncertainty about how much the health plans will cost, according to Will Humble, executive director of the Arizona Public Health Association.
Tax credits set to expire
During the pandemic, Congress approved tax credits to make health insurance premiums more affordable. But those subsidies are about to expire, and if lawmakers don’t extend them, the cost of health insurance through the ACA will increase significantly.
“My suggestion is for people to do their homework now but don’t make any decisions until Congress decides whether they’re going to extend premium tax credits or not,” Humble said. “Right now it looks like they are not, but they might.”
The current government shutdown centers around the tax credits, with Senate Democrats insisting that subsidies be extended while Republicans want the government reopened before there’s any discussion on healthcare.
Potential impact on coverage
Claudia Maldonado with the Arizona Alliance for Community Health Centers said if the tax credits aren’t extended, hard-working Arizonans could be forced to pay hundreds or even thousands of dollars more in annual premiums.
She worries that some people will drop coverage altogether, putting added strain on the healthcare system.
“There are people that have high blood pressure or diabetes or high cholesterol or managing some chronic disease,” Maldonado said. “If somebody foregoes care and is not able to take medication or starts rationing medication, that’s a really slippery slope for our community members and that can lead to bigger issues down the line.”
However, the Congressional Budget Office said if tax credits are extended, it would increase the federal deficit by $350 billion.
ACA enrollment runs from Nov. 1 to Jan. 15, but people must sign up by December 15 to be covered at the start of the new year.
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