Expert: Health care premiums higher without ACA tax credits
Local expert warns of sky-high insurance premiums if ACA tax credits aren’t renewed
PHILADELPHIA (KYW Newsradio) — Health care experts have warned that premiums for millions of people could skyrocket as the Senate deal that will likely end the government shutdown does not extend the expiring Affordable Care Act tax credits that have made private insurance less costly.
Pennie, Pennsylvania's health insurance marketplace, said monthly enrollee costs would jump 102% without Congressional action and possibly four times more in rural areas.
Zack Wischnia, a medicare insurance broker based in Fishtown, said independent contractors and families would be affected most by the expiring Obamacare tax credits.
“I spoke with one just today where they're expecting their fourth child, and we were playing with the numbers to see what would happen if we took the dad off the policy or if the kids were to get on [Children’s Health Insurance Program],” he said, adding he could find more options for people when using Pennie.
According to Pennie’s website, it has seen a 20% decrease in new sign-ups from the last open enrollment period to this year’s, as a result of no extension to expiring subsidies.
In addition to the online marketplace, Wischnia said people should find an insurance broker to help them, and shared other plans customers can explore.
“If possible, stick to silver,” he advised. “These plans, although the premiums are going up a little bit, they still have the lowest co-pays, deductibles, and out-of-pocket max. If you're on a PPO, maybe consider an HMO.”
Wischnia believes if tax credits aren’t extended, insurance costs could stay high for a while.
“I would expect next year to be similar,” he said, “then in the year after that, I would guess that the prices will come down.”
However, he urged consumers not to wait to see if the government will extend the subsidies, instead to explore alternatives now.
