Summary
Health insurance premiums in the U.S. are expected to rise significantly next year because extra subsidies that helped keep costs down during the COVID-19 pandemic are set to end. This change may lead to financial difficulties for many households, and some people might have to drop their coverage.
Key Facts
- Health insurance premiums may go up by more than 75% for those using the ACA Marketplace.
- The extra subsidies were part of the American Rescue Plan Act and are set to expire at the end of this year.
- These subsidies helped many people afford insurance since their introduction.
- The end of these subsidies might cause healthier people to stop buying insurance, which could drive prices up even more.
- Some states, like Rhode Island and Pennsylvania, expect premium increases of 82% or more.
- If subsidies end, it's estimated that 3.7 million people could lose their health insurance.
- This issue is influencing ongoing discussions in Congress about a new spending plan.
