Looming Health Care Crisis: Enhanced Premium Tax Credits' Expiration to Drive Up Costs

Strategic Insights -

Congresswoman Jennifer McClellan and Protect Our Care Virginia hosted a roundtable to sound the alarm on the expiration of enhanced Premium Tax Credits under the Affordable Care Act (ACA), which will increase health care costs for Virginians. With open enrollment for the Virginia Marketplace starting November 1, 106,000 Virginians are expected to drop out of the Virginia Marketplace, leading to raised premiums for the remaining pool and straining free clinics and community health centers.

Key Takeaways:

  • The expiration of enhanced Premium Tax Credits under the ACA will lead to 106,000 Virginians dropping out of the Virginia Marketplace, resulting in increased health care costs for those remaining.
  • This will put further strain on free clinics and community health centers, which are already facing capacity issues.
  • Congresswoman McClellan emphasized that Republicans' decision to let the credits expire will lead to a health care crisis, with people having to make tough decisions between paying health insurance premiums and other essential expenses.
  • TCPI Policy Director Freddy Mejia stated that the end of enhanced credits will lead to thousands of families losing access to subsidies, causing them to have to choose between paying for health care or other essentials, with over 100,000 people expected to lose ACA Marketplace coverage.
  • Dr. Patricia Cook, Chief Medical Officer at Daily Planet, highlighted that the lack of insurance will lead to a decrease in preventive care, causing patients to present with diseases at later stages, making treatment more expensive and devastating.
  • Bron Hansboro, owner of The Flower Guy Bron, a Richmond small business, shared that the loss of credits will require him to take on increased risk and find non-existent funds to supplement his employee's expenses.
  • Ronni Moss, an employee of The Flower Guy Bron, explained that she benefited from the Virginia Marketplace and was uncertain how families like hers will cope with increased insurance costs without the tax credits.
  • Karen Legato, Executive Director of Health Brigade, warned that the loss of people dropping out of the ACA will lead to a whole access issue, tied to clinics that are already nearly underwater.
  • Planned Parenthood Advocates of Virginia Executive Director Jamie Lockhart emphasized that the impending health care cuts, including the expiration of key tax credits, will harm patients and represent an unprecedented attack on public-health infrastructure.

Statistics:

  • 106,000 Virginians are expected to drop out of the Virginia Marketplace if the Enhanced Premium Tax Credits expire.
  • This number could lead to a 114% increase in premiums for those remaining in the market.
  • Over 100,000 people in Virginia are expected to lose ACA Marketplace coverage due to the end of enhanced credits.
  • Approximately 50,000 of those individuals will remain uninsured.
  • Replicating the subsidies at the state level would cost nearly $230 million.

Sources:

  • Office of Virginia Rep. Jennifer McClellan
  • Protect Our Care Virginia
  • KFF (analysis)
  • TCI Policy Director Freddy Mejia
  • Dr. Patricia Cook, Chief Medical Officer at Daily Planet
  • Bron Hansboro, owner of The Flower Guy Bron
  • Ronni Moss, employee of The Flower Guy Bron
  • Karen Legato, Executive Director of Health Brigade
  • Planned Parenthood Advocates of Virginia Executive Director Jamie Lockhart