Last week, a proposal seeking to extend Affordable Care Act tax credits that lower premium costs failed after a vote in the Senate — and a vote in the House was cancelled Tuesday.
Without an extension, the subsidies are set to expire at the end of the year. Michigan Public Health Association president Marica Ditmyer said most people with ACA marketplace coverage depend on the subsidies.
“The subsidies that are given are really a crucial part of making health insurance affordable for many Americans and many Michiganders," Ditmyer said.
Though the subsidies have existed since the creation of the ACA, they need to be renewed by Congress periodically. Most recently, they were extended in 2022 to last through the end of 2025.
Democrats introduced legislation for a three-year extension at the end of the year, but enrollees shopping for 2026 marketplace plans have already seen premium costs go up after the legislation failed in the Senate and stalled in the House.
According to the Michigan Department of Insurance and Financial Services, 530,000 Michigan residents were enrolled in ACA marketplace coverage as of October.
“It will be a significant number of individuals who are going to be affected, especially those with lower income and those who are significantly below the federal poverty level," Ditmyer said.
A survey by the Kaiser Family Foundation found 6 in 10 ACA enrollees polled said an increase of $300 a year for their premiums would significantly disrupt their household finances.
KFF also found that the loss of ACA subsidies will impact households differently based on their income level. For example, a household with an income of $55,000 could see premiums increase by over $1400 per year — but a household with a lesser income of $45,000 could see even higher premium hikes at over $1,800 a year.
Ditmyer said higher premium costs may also cause people to forgo insurance entirely.
"If individuals don't have insurance, they're going to be going to emergency rooms rather than to doctors and the burden will end up costing more rather than reducing the cost, which is what they think it will do," Ditmyer said.
WMUK reached out to Congressional representatives from the area — Republican Bill Huizenga, Democrat Hillary Scholten, Republican John Moolenar and Republican Tim Walberg — to ask about their stance on extending the subsidies. None of the lawmakers responded to multiple requests for comment.
