Article Summary –
Nearly 20 million Americans are enrolled in subsidized health insurance through the Affordable Care Act (ACA) marketplace, but if these subsidies are not renewed by the Republican-led Congress and President-elect Donald Trump’s administration in 2025, premiums could increase by over 500% for many. Both President Biden’s American Rescue Plan Act and the Inflation Reduction Act expanded these subsidies, capping premiums for those earning up to 400% of the poverty level, which has been pivotal for middle-income families. The Congressional Budget Office projects a significant drop in marketplace enrollment by 31% by 2028 if subsidies are not extended, with Republican lawmakers generally opposing the renewal, arguing for alternative approaches to healthcare affordability and choice.
Nearly 20 million Americans benefit from subsidized health insurance through the Affordable Care Act marketplace. Without renewal of these subsidies by the Republican-led Congress and President-elect Donald Trump’s administration in 2025, premiums could rise by over 500%.
The 2017 health care reform law, or Obamacare, offers affordable plans and subsidies to lower-income individuals. The 2021 American Rescue Plan Act and 2022 Inflation Reduction Act enhanced these subsidies until 2025, limiting premiums to 8.5% of income for those earning up to 400% of the poverty line, aiding middle-income families.
In the Sept. 10 presidential debate, Trump indicated he might attempt to repeal and replace the ACA with a less costly option, though details remain vague with statements like, “I have concepts of a plan.”
The Republican Study Committee, comprising most House GOP lawmakers, in its 2025 budget proposal, advocated ending “Obamacare subsidies for the wealthy.” Idaho Sen. Mike Crapo, the leading Republican on the Senate Finance Committee, opposed extending the subsidies, urging collaboration to enhance healthcare choice and affordability.
The nonpartisan Congressional Budget Office projected 22.8 million Americans will use the marketplace in 2025, dropping to 18.9 million in 2026 and 15.8 million by 2028 if subsidies lapse, a 31% reduction.
KFF data shows 418,100 Michiganders picked a 2024 insurance plan via the Obamacare marketplace.
A similar reduction to the CBO prediction implies over 128,000 Michiganders could lose insurance coverage.
In 2017, Michigan Republican Reps. Jack Bergman, Bill Huizenga, John Moolenaar, and Tim Walberg supported the American Health Care Act, which aimed to repeal the ACA, potentially increasing uninsured Americans by 23 million.
Every Republican in Congress opposed the 2021 and 2022 laws enhancing the subsidies.
—
Read More Michigan News
