Nearly 24 million consumers have chosen a Affordable Care Act health insurance plan for 2025, breaking last year’s enrollment record, although consumers still have a week to sign up for coverage this year, Biden administration officials announced Wednesday.
The number of registrations this year surpassed last year’s record of 21.4 million people. And consumers have until January 15 to select a health insurance federal market plan, Health.govaccording to the Centers for Medicare & Medicaid Services.
Record enrollment was buoyed by generous grants passed by Congress during the COVID-19 pandemic, but outgoing Biden administration officials cautioned there was no guarantee they would be extended beyond from the end of this year.
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“Our efforts to reduce health care costs and expand coverage are under threat,” Neera Tanden, director of the White House domestic policy council, said on a call with reporters Tuesday. If the Republican-controlled Congress does not extend the increased subsidies beyond this year, “the costs will skyrocket for millions of Americans.” The results would be catastrophic.”
Enhanced ACA subsidies expire next year
The Affordable Care Act, often called Obamacare, has historically provided taxpayer-subsidized credits to consumers based on their income level to offset the cost of monthly health insurance premiums. These grants became more generous as part of the American Rescue Plan Act in 2021 to ensure more Americans are covered during the COVID-19 pandemic. In 2022, the Inflation Reduction Act extended these subsidies until 2025.
So even though health insurance costs have increased, consumers can still benefit from deeply discounted insurance. Biden administration officials have said 80% of consumers can get a health plan for $10 or less per month.
If the enhanced credits are not extended beyond 2025, consumers’ share of their monthly insurance bills would increase by more than 75% and rates in some states could more than double, according to a report. analysis by KFFa nonprofit health policy organization.
In a statement, President Joe Biden touted his efforts to strengthen ACA coverage, noting that enrollment has nearly doubled since he took office.
“I urge Congress to double down on the progress we’ve made and ensure Americans have access to quality, affordable health care by extending the ACA premium tax credit this year,” Biden said.
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What will Trump do?
Although it is unclear how President-elect Donald Trump will approach the Affordable Care Act when he takes office later this month, he has pushed, unsuccessfully, efforts to repeal and replace the Health Care Act of 2010 during his first term. The Trump administration too expanded the use of short-term health insurance planswhich offered limited benefits and cheaper monthly premiums, but denied coverage for existing health conditions.
During his first term, Trump also cut the marketing budget for navigators that help consumers sign up for commercial insurance or Medicaid, the federal health care program for low-income families that was expanded in most states through ACA funding.
Brian Blase, a White House adviser in the Trump administration who directs the conservative think tank Paragon Health Institute, noted that last year’s record enrollment occurred against a backdrop of consumer complaints that some were being replaced from one plan to another without their permission.
“Unfortunately, the plans offer such little value that about half of enrollees must receive giant subsidies covering the entire cost of the premium to be able to enroll,” Blase said.
Republican attorneys general from 19 states sued block the Biden administration’s efforts to expand ACA coverage to people receiving Deferred Action for Childhood Arrivals, or DACA, an Obama-era executive action that protected from deportation undocumented immigrants who arrived in the United States as were children. DACA members, sometimes called Dreamers, which are approximately 530,000, are still allowed to enroll in ACA coverage in 31 states.
“For the first time ever, and despite ongoing litigation, DACA recipients…in 31 states can sign up for affordable coverage on the marketplace,” said Xavier Becerra, secretary of the U.S. Department of Health and Human Services. social. “Very proud of that.”