Coloradans are expressing their fears regarding the potential impacts of the Affordable Care Act (ACA) tax credits as the threat of a federal government shutdown looms. During a recent press event hosted by First District Representative Diana DeGette, various residents shared their concerns about losing health insurance affordability due to the expiration of these critical subsidies.
One such individual, Chelsey Baker-Hauck, a 52-year-old Denver resident with a history of Long COVID, highlighted her daily struggles with health care costs. Baker-Hauck, who operates a consulting business and obtains her insurance through the state’s health exchange, Connect for Health Colorado, spoke candidly about the financial burden she faces. Her ongoing heart condition treatments could escalate to over $400,000 annually if she were forced to pay out of pocket, as her necessary medications run into tens of thousands of dollars monthly.
Feeling compelled to speak out despite her personal discomfort, Baker-Hauck underscored the reality that millions of Americans could lose their health insurance due to rising costs. She criticized what she termed policy inertia in Washington, D.C., which she believes could gravely impact lives. “While I should be focusing on my health, I’m consumed by concerns about how to afford insurance and pay my mortgage,” she said.
DeGette, alongside state insurance officials, expressed a strong desire to see the extension of subsidies that have been vital during the pandemic. The ACA tax credits support many individuals in purchasing insurance through state marketplaces, which were established during the inception of the ACA.
Contrastingly, Republican House Speaker Mike Johnson has referred to the enhanced subsidies as a “boondoggle,” asserting that the tax relief measures should be tied to COVID and arguing that increased costs stem from the subsidization of insurance companies.
Experts at the event voiced alarm over projections indicating that health insurance premiums could surge by as much as 28% next year if these tax credits are not renewed. According to Insurance Commissioner Michael Conway, some individuals may face premium increases of between 160% and 170%, particularly in rural areas where costs could triple. The grim outlook suggests that over 100,000 Coloradans may opt to forgo health insurance altogether if the subsidies are not extended.
DeGette pointed to real-life implications, citing an illustrative case of a couple in her district who would see annual premiums rise by more than $15,000, a situation she labeled as unsustainable. The ramifications extend beyond those directly relying on subsidies, as fewer participants in the insurance pool could elevate expenses for all insured individuals.
Insurance leaders assured attendees that their agencies are prepared to assist Coloradans, even if a resolution from Congress arrives after the November 1 open enrollment start date. Concerns for residents in less affluent areas, like Costilla County, were notably highlighted, with average premiums potentially spiking from an affordable $78 to an untenable $759 per month if federal subsidies are not restored.
The worsening scenario poses significant challenges for the state’s health care system, with experts warning that the consequences of uninsured patients typically result in delayed care, leading to higher treatment needs and costs. Conway articulated a looming crisis in the health care sector if action is not taken, emphasizing that the repercussions would affect the entire ecosystem of health care.
The urgency of renewing these tax credits is underscored by the potentially catastrophic implications for those already grappling with health issues and rising costs. In light of these concerns, there remains a glimmer of hope that decision-makers will prioritize the health and financial well-being of Colorado residents as open enrollment approaches.