- Idaho is the first state experiencing significant Affordable Care Act (ACA) premium hikes as federal tax credits are set to expire.
- Consumers in the state face an average net premium increase of a staggering 75%, with gross premiums rising about 10%.
- The spike is due to the potential expiration of enhanced premium tax credits from the American Rescue Plan Act, affecting thousands of middle-income households.
- While Idaho is the first to see the impact during its open enrollment, analysts warn that other states could face even more severe increases.
A Staggering Price Hike Hits Idaho
As the nation watches, Idaho has become the canary in the coal mine for the future of Affordable Care Act (ACA) costs. With the state’s marketplace open enrollment underway, consumers are being blindsided by massive price increases for their health plans. The reason? The looming expiration of enhanced federal tax credits that have, for years, kept premiums manageable for millions.
Pat Kelly, the executive director of Your Health Idaho, laid out the shocking numbers. “On average, gross premiums, or the overall cost of the premium, has gone up about 10 percent,” he stated. “And the net premium, or the amount the consumer pays after the tax credit has been applied, has increased about 75 percent.”
This dramatic surge directly results from the potential end of the enhanced premium tax credits, which were established by the American Rescue Plan Act and later extended. These credits were crucial for households earning above 400 percent of the federal poverty level, allowing them to afford coverage. In Idaho alone, this affects approximately 13,000 enrollees who now face losing this vital financial support.
The National Ripple Effect
While Idahoans are the first to confront these new rates, they will not be the last. Experts warn this is just a preview of a nationwide problem if Congress fails to act.
“There’s been about a dozen [state-based marketplace] states that have started window shopping, and the average increase for that same example couple is typically over $20,000 annually,” said Gideon Lukens of the Center on Budget and Policy Priorities. For a 60-year-old couple in Idaho, the increase could be as high as $18,000 a year.
The severity of the impact will vary significantly from state to state. Key factors include whether a state expanded Medicaid and the local cost of insurance premiums. States that did not expand Medicaid, such as Mississippi, Tennessee, and South Carolina, are projected to see drastic jumps in their uninsured populations. Data from KFF also indicates that certain congressional districts in states like Wyoming and West Virginia could see monthly premiums increase by as much as 700 percent.
Worsening Risk Pools and Expert Advice
Beyond the immediate financial shock, the expiration of these credits could destabilize the insurance market. Analysts like Lukens note that as costs rise, healthier individuals are more likely to drop their coverage. This leaves a sicker, more expensive group of people in the insurance pool, which in turn drives premiums even higher for everyone remaining.
With many Idahoans set to be automatically re-enrolled at these higher rates, officials are urging consumers to be proactive. Kelly encouraged customers to enroll early and seek help from a licensed agent or broker, noting that over 70 percent of enrollments in Idaho are facilitated by these experts.
As the deadline approaches, state officials remain on high alert. “We stand ready to move mountains, if needed,” Kelly affirmed, expressing hope that a last-minute legislative solution will ensure “that Idahoans receive all the savings that they’re eligible for.”
Image Referance: https://thehill.com/policy/healthcare/5568649-affordable-care-act-enrollment-idaho-tax-credits/