Lisa Jolie is paying less for her health insurance thanks to an enhanced premium tax credit. These subsidies are intended to lower the price of health insurance purchased through the ACA Marketplace. The subsidies could expire next year, increasing the cost of health insurance for millions.
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When Lisa Jolie enrolled in the Affordable Care Act Marketplace, she said it was a lifeline.
Jolie, 55, was diagnosed with type 1 diabetes when she was 32 years old. Since then, she has had complex health concerns, including neurological problems, stage 3 kidney disease, and anemia.
For most of her life, Jolie had insurance through her ex-husband’s employment. But when she divorced in 2021, she lost that coverage.
“I probably cried every day thinking, what the hell am I going to do?” she said.
Jolie enrolled in the ACA Marketplace the following year and became eligible for an enhanced premium tax credit designed to lower the price of health insurance purchased through the ACA Marketplace. She pays $96 a month in health insurance premiums, according to documents reviewed by Business Insider.
“I remember being so grateful and almost surprised that there was something out there that could help me get health insurance,” she said.
Jolie is one of the millions of Americans who are buying health insurance using the enhanced premium tax credit, which could see costs rise next year when the subsidy expires. .
According to the Center on Budget and Policy Priorities, 19.7 million ACA enrollees became eligible for enhanced premium deductions this year. This represents 92% of all ACA enrollees. In addition, a report released July 26 by KFF, a nonprofit health policy organization, found that the enhanced premium tax credit would reduce costs for consumers by about 44%, with the average enrollee earning $705 per year. It is said that a dollar was saved.
The subsidy was introduced in 2021 as a temporary measure and expanded to include participants with incomes above 400% of the federal poverty line ($60,240 per person or $124,800 for a family of four). It was done. In 2022, the Inflation Control Act extended the subsidy until the end of 2025.
Without the enhanced premium deductible, Jolie’s monthly payments could increase by about 186% to $275, according to an analysis by the Center on Budget and Policy Priorities shared with Business Insider.
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“It just has a huge negative impact on my life,” Jolie said.
Jolie was able to get medical insurance with subsidies
Jolie lives in Steubenville, Ohio, a city about 30 miles west of Pittsburgh, with her 24-year-old daughter Jessica. Jolie bought a small house in September 2023 using the money she received from her divorce settlement.
Jolie receives a monthly spousal settlement, which is her only income. Jolie said she is unable to continue working full-time due to health complications. She is trying to find part-time work as a teaching assistant, but said health issues mean she often blacks out and is unable to concentrate for long periods of time.
Jolie said she doesn’t qualify for many social safety nets. Additionally, she said she has used up her savings.
“I’m having a hard time,” Jolie said. “When you think about the rising prices of groceries and rising insurance premiums, it becomes unbearable.”
Subsidy expiration could spell hardship for millions of Americans
The outcome of November’s election may decide the fate of enhanced subsidies.
On September 25, Democratic Sens. Jeanne Shaheen and Tammy Baldwin introduced the Affordable Care Act, which would permanently strengthen the insurance premium tax credit. Representative Lauren Underwood, also a Democrat, has introduced a similar bill in the House.
After passing both the House and Senate, the bill must be signed by the President to take effect. It is unclear when a decision on the tax credits will be made.
Republican lawmakers oppose the cost of subsidies to taxpayers. The Congressional Budget Office and the Joint Committee on Taxation estimate that making this policy permanent would increase the budget deficit by $335 billion over the next 10 years.
Cynthia Cox, vice president of KFF, previously told Business Insider that Congress could be split between the House and Senate after the election, making it difficult to pass legislation.
“There’s a pretty good chance that there will be a split in power in Washington,” Cox said. “If that happens, no one knows what will happen to these subsidies, but it will probably be an uphill battle to renew them. ” he said.
According to Reuters, the Congressional Budget Office estimates that 3.8 million people could become uninsured if the enhanced subsidies expire.
For enrollees like Jolie, saving hundreds of dollars each month is critical to covering their premiums.
“If it wasn’t for them, I don’t know how I would have survived each day,” Jolie said. “It would mean complete ruin for myself. I’m not talking financially, but also health-wise.”
