Article Summary –
Nearly 20 million Americans are enrolled in subsidized health insurance plans through the Affordable Care Act marketplace, and if the subsidies are not renewed by the new Republican-led Congress and President-elect Trump’s administration, many could face premium increases of over 500%. The 2021 American Rescue Plan Act and the 2022 Inflation Reduction Act expanded these subsidies, capping premiums at 8.5% of a person’s annual income for those earning up to 400% of the poverty level, but Republican leaders and the Republican Study Committee have expressed opposition to extending these subsidies. The Congressional Budget Office projects that without subsidy renewal, marketplace enrollment will decline by 31% from 2025 to 2028, affecting states like Pennsylvania, where more than 133,000 people could lose coverage.
Nearly 20 million Americans benefit from subsidized health insurance through the Affordable Care Act marketplace. Without Congressional action by 2025, these subsidies might expire, causing premiums to rise by over 500%.
The 2017 health reform law, or Obamacare, allows individuals to purchase insurance with subsidies that aid low-income families. The Biden American Rescue Plan Act and Inflation Reduction Act expanded these subsidies through 2025, capping premiums at 8.5% of income for those earning up to 400% of the poverty level, thus aiding middle-income families.
During the September 10 presidential debate, Trump mentioned repealing the ACA for a “better and less expensive” plan, though he provided no specifics, similar to his 2016 campaign.
The Republican Study Committee, including many GOP lawmakers, proposed removing “Obamacare subsidies for the wealthy.” Idaho Sen. Mike Crapo, top Republican on the Senate Finance Committee, stated he opposes extending subsidies, advocating instead for improved healthcare choice and affordability.
The Congressional Budget Office forecasts 22.8 million insured through the marketplace in 2025, dropping to 18.9 million in 2026 and 15.8 million in 2028 if subsidies lapse, a 31% decline.
KFF data shows 434,571 Pennsylvanians selected 2024 plans via the Obamacare marketplace.
A 31% reduction could lead to over 133,000 losing coverage in Pennsylvania alone.
In 2017, Pennsylvania Republicans Mike Kelly, Scott Perry, Lloyd Smucker, and Glenn Thompson supported the American Health Care Act, which aimed to repeal the ACA, potentially increasing uninsured Americans by 23 million. Every Republican opposed the 2021 and 2022 laws that raised subsidies.
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