NEW YORK (AP) — Thursday is the last day for much of the country to choose an Affordable Care Act health insurance plan, as the expiration of federal subsidies drives up health care costs and lawmakers continue to debate how to fix the problem.
For programs starting in February, the open enrollment window will end at this time in most states. About 10 states that operate their own markets have later deadlines or have extended them to the end of the month to give residents more time.
This date is critical for millions of small business owners, gig workers, farmers, ranchers and others who cannot get health insurance from their jobs and therefore rely on marketplace plans. Last year, a record 24 million Americans purchased Affordable Care Act health plans.
But this year, their decisions about health insurance are more difficult than usual because it’s hard to figure out how much health insurance will cost. So far, enrollment still lags last year’s numbers — about 22.8 million Americans have signed up, according to federal data.
For months last year, it was unclear whether Congress would allow expanded coronavirus-era subsidies that offset costs for more than 90% of enrollees to expire at the end of the year. Democrats forced a record-long government shutdown over the issue but were still unable to reach a deal. As a result, subsidies are set to expire on January 1 and average monthly premiums for enrollees receiving subsidies will more than double by 2026, according to an analysis by health care nonprofit KFF.
Still, the question of whether Congress will reinstate the tax credit looms over Washington. Several participants told The Associated Press that they had either delayed signing up for coverage or signed off as they anxiously followed what was happening on Capitol Hill.
Last week, the House passed a three-year extension of the subsidy after 17 Republicans joined Democrats against the wishes of Republican leaders. But the Senate blocked a similar bill last year.
Sen. Bernie Moreno, R-Ohio, has been leading a bipartisan group of 12 senators trying to reach a compromise and said this week he expected to introduce a proposal by the end of the month. The outlines of the senators’ bipartisan plan involve a two-year deal that would extend enhanced subsidies while adding new restrictions on who can receive them. The proposal would also create a new health savings account option for a second year that President Donald Trump and Republicans prefer.
Under the deal being discussed, the ACA’s open enrollment period would be extended to March 1 of this year to give people more time to make their own coverage plans after the disruption.
Still, both Republicans and Democrats say they are not done with the plan and the two sides have yet to agree on whether states can use separate funds for abortion coverage to enact new limits.
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Associated Press writers Mary Claire Jalonick and Lisa Mascaro contributed in Washington.