Summary
Health insurance premiums for many people buying their own insurance through the Affordable Care Act (ACA) Marketplaces will rise significantly next year. This is due to the expiration of a federal tax credit that helped make the insurance more affordable. Ellen Allen, a 63-year-old resident of West Virginia, expects her monthly premium to increase from $479 to about $2,800.
Key Facts
- Ellen Allen currently pays $479 a month for her health insurance via Healthcare.gov.
- The federal tax credit that helps lower insurance costs will expire at the end of this year.
- The average ACA insurance premium is expected to increase by 75% next year.
- Allen estimates her new premium will be about $2,800 a month.
- Allen has expensive prescriptions, such as an asthma medication that costs $700 a month and an eye drop medication at $800 a month.
- She plans to save money each month to cover the higher premiums but this affects her ability to save for retirement.
- Approximately 4.2 million more Americans may become uninsured over the next decade due to these changes, according to the Congressional Budget Office.
- The extension of the tax credits was not included in recent legislation, meaning many might end up uninsured.
