Enhanced premium subsidies for marketplace health insurance are expiring on New Year's Day, potentially leaving nearly 500,000 Michigan residents paying significantly more for coverage.
- Nearly 500,000 Michigan residents will face higher healthcare costs starting Jan. 1 as enhanced premium subsidies expire, with monthly increases of $100-200 expected.
- The subsidies helped families earning over $128,000 access affordable marketplace insurance during COVID, but Congress has not approved an extension beyond the Dec. 31 deadline.
- Healthcare providers worry patients will delay care due to higher costs, potentially leading to more emergency room visits and advanced disease complications
The subsidies, which provided discounts for families earning more than 400% of the federal poverty level — about $128,000 for a family of four — were implemented in 2021 during the COVID-19 pandemic with a scheduled expiration of Dec. 31, 2024. Congress has not approved an extension.
"The state is cold red," said Jerry Norris, describing the current healthcare situation. "And I think it's going to get worse."
Without the subsidies, affected individuals could face increases of $100 to $200 per month for similar health plans, according to Norris.
The expiration concerns healthcare providers who worry patients may delay necessary medical care due to cost barriers.
"They have the ability to say: I have coverage. This isn't going to bankrupt me and my family," said physician and Executive Director of the Commitee to Protect Health Care Rob Davison, explaining how the subsidies helped patients access timely care.
Davison fears patients will return to waiting until emergencies arise, leading them "to wait until the last minute when they're having a problem to come see me in the emergency department where costs are higher, where complications are greater because the diseases are more advanced."
GOP Speaker of the House Mike Johnson said the House is expected to vote on extending the subsidies while developing broader healthcare legislation.
"We're working on a package of legislation that will reduce premiums for all Americans not just 7% of them," Johnson said.
I reached out to Congressman Tom Barrett's office for comment.
In a statement, the congressman said “Rising health care costs and our increasingly confusing health care system are putting a real strain on hardworking families in Michigan. The deeply flawed Affordable Care Act has benefited insurance companies with record profits while denying more claims and raising premiums for everyday Americans. We need to make significant reforms to the way we deliver health care in this country, and it starts with Democrats and Republicans coming to the table to restore power to patients.”
"We need to make significant reforms to the way we deliver health care in this country, and it starts with Democrats and Republicans coming to the table to restore power to patients," Barrett said.
Norris hopes legislative action comes before residents face difficult financial decisions about their healthcare coverage.
"We're going to fall to a point where that savings is going to evaporate," Norris said.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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