As the government shutdown drags on, lawmakers remain at an impasse over health care tax credits. At the same time, health care costs are expected to surge in the Mountain West.
The COVID-era tax credits helped many people afford health care coverage, said Matthew McGough, a policy analyst with the nonprofit KFF. He said without those credits, Americans who rely on the Affordable Care Act face a double whammy because insurance premiums are also rising.
The Affordable Care Act was passed in 2010 and enacted in 2014. The tax credits aimed at reducing the cost of monthly premiums by essentially subsidising those costs, were included in the American Rescue Plan Act and extended in the Inflation Reduction Act—to enhance the safety net during the pandemic. Extending these tax credits was not included in the One Big Beautiful Act earlier this summer.
“That means they have higher cost sharing. So, the higher deductible to meet, higher maximum out of pocket limit And when they go to the doctor they’re going to be paying more in a co-pay or co-insurance,” said McGough.
The elimination of the tax credits will hit middle-income people the hardest, he said, leaving people with fewer options for health insurance..
“Many people are going to be left with no good options, and they’re going to have to weigh whether they want to continue to be insured through the ACA marketplaces – potentially dropping down to lower coverage but it also means a higher deductible, higher out of pocket and higher co-pays,” he said. “Others may lose the ability to afford health insurance entirely. So this certainly is really going to affect some people and change how they seek out health insurance.”
Arizona, New Mexico and Wyoming will see the highest estimated increases at over 400%. Utah, Colorado and Northern Nevada may see increases of over 300%. And in Idaho and Southern Nevada, there could be increases over 200%, according to KFF.
To put that in perspective, McGough gave this example: A couple in their 60s, making $85K, would see their payment of $602 a month increase to over $1,900 per month.
Open enrollment starts Nov. 1. The tax credits were already set to expire at the end of December.
This story was produced by the Mountain West News Bureau, a collaboration between YOUR STATION, Wyoming Public Media, Nevada Public Radio, Boise State Public Radio in Idaho, KUNR in Nevada, KUNC in Northern Colorado, KANW in New Mexico, Colorado Public Radio, KJZZ in Arizona and NPR, with additional support from affiliate newsrooms across the region. Funding for the Mountain West News Bureau is provided in part by the Corporation for Public Broadcasting and Eric and Wendy Schmidt.
