Experts caution that the outcome of the upcoming presidential election in November could imperil healthcare coverage for millions despite a surge in sign-ups for health insurance under the Affordable Care Act (ACA), commonly known as Obamacare.
Former President Donald Trump has reiterated his intention to dismantle the ACA if re-elected, while a potential Republican-controlled Congress might allow crucial discounts, making Obamacare more affordable for many, to lapse.
The impact of this election on healthcare is significant, notes Chris Meekins, a health policy research analyst at Raymond James investment firm. Concerns over healthcare expenses remain a primary driver of negative perceptions of the U.S. economy, with a recent KFF poll revealing that nearly three-quarters of adults fear their inability to afford medical bills.
Surprisingly, half of Americans, including a notable segment of Republicans, express a desire for the expansion of ACA provisions by the next administration and Congress.
The Potential Threat to Health Coverage for Millions in the 2024 Presidential Election (Credits: NBC News)
As of January 24, over 21 million individuals had enrolled in health insurance plans for 2024 through Obamacare, surpassing the total sign-ups during the previous enrollment period. While some of this increase is attributed to individuals losing Medicaid coverage, a significant portion stems from government-backed subsidies provided under the Inflation Reduction Act, according to Meekins.
These subsidies, which substantially reduce monthly premiums, are targeted at individuals or families facing healthcare costs exceeding 8% of their annual income.
Originally implemented for two years as part of the 2021 Covid relief bill, these subsidies were extended for an additional three years under the Inflation Reduction Act in 2022. However, their expiration at the end of 2025 looms, with prospects for further extension appearing bleak under a Republican administration.
Lawrence Gostin, director of the O’Neill Institute for National and Global Health Law at Georgetown University, warns that over 3 million Americans could lose their insurance if Congress fails to extend these subsidies. The impact of these subsidies has been particularly significant in Republican-led states such as Florida and Texas, where enrollment has notably surged over the past decade.
Drew Altman, president and CEO of KFF, highlights the looming threat to Obamacare under a potential Republican-controlled government. While a complete repeal of the ACA seems improbable, Altman suggests that the continuation of subsidies is doubtful under such circumstances, leaving individuals enrolled in Obamacare plans to potentially face substantially higher monthly premiums.
Higher-income families, in particular, could bear the brunt of subsidy expiration, as observed by John Graves, a professor of health policy and medicine at Vanderbilt University School of Medicine. Individuals with very low incomes would still be entitled to subsidies, but those with higher incomes could experience a significant increase in premium costs.
Alison Farrell, a resident of Phoenix, Arizona, echoes concerns about the potential impact of subsidy expiration. Having left her job to start a small business, Farrell currently benefits from extended subsidies under Obamacare. The absence of these subsidies would considerably raise her monthly premiums, posing a financial strain on her family.
The looming outcome of the presidential election and the composition of Congress could have far-reaching consequences for healthcare coverage in the United States, particularly for those enrolled in Obamacare plans reliant on government subsidies.
