Tick-tock, Congress—millions of Americans are watching as health care costs teeter on the edge of a cliff with Affordable Care Act (ACA) tax credits hanging in the balance.
As government shutdown talks stall, Republicans in Congress are digging in their heels, refusing to negotiate an extension of these critical ACA subsidies while premiums for next year are being locked in right now.
The Hill reported that with open enrollment for the ACA marketplace kicking off on November 1 in most states—and as early as October 15 in Idaho—time is running out to prevent a premium spike that experts warn could more than double costs for many families.
Let’s rewind to last Friday, when Democrats rejected yet another attempt to end the shutdown, leaving Senate Majority Leader John Thune empty-handed on a straightforward seven-week extension plan.
Thune’s frustration was palpable when he said, “Discussions are going on with our colleagues on both sides of the aisle, but at some point they have to take yes for an answer.” Well, Senator, it seems “yes” is the hardest word when political gamesmanship trumps practical solutions.
Meanwhile, the ACA tax credits—set to expire on December 31 if no action is taken—are the elephant in the room, and ignoring them risks sticker shock that could alienate millions from the marketplace.
As premiums are finalized now, the timing couldn’t be worse—Idaho’s enrollment window opens in mere days, and most states follow just weeks later.
Experts are sounding the alarm that even a last-minute deal before year-end might not undo the damage, as sudden cost jumps could drive consumers away for good.
Kevin Patterson, CEO of Connect for Health Colorado, put it bluntly to The Hill: “I am worried that the sticker shock of sending out a message that says your premium is going to go up 213 percent.” That’s not just a number; it’s a gut punch to hardworking folks already stretched thin.
A recent KFF survey shows 78 percent of adults back extending these enhanced credits, cutting across party lines with strong support from Democrats, independents, and even a majority of Republicans.
Yet, with 4 in 10 of those supporters pointing fingers at Republicans if the credits lapse, the political stakes are as high as the premiums could be.
Sen. Patty Murray of Washington didn’t mince words last Friday, stating, “Republicans would rather shut down the government than address a health care crisis.” While her rhetoric leans heavily on blame, the underlying concern about cost hikes for families is hard to dismiss.
Under the Biden administration, ACA enrollment hit record highs, nearing 24 million for 2025, thanks in large part to these boosted tax credits.
But if Congress fails to act, the fallout could undo years of progress, with experts warning that a staggering number of Americans might lose coverage altogether due to unaffordable rates.