Open enrollment begins Friday for Affordable Care Act 2025 health plans, but the plans could become much more expensive for consumers next year if Congress and the new president do not agree to extend the subsidies in pandemic period.

Enhanced subsidies for ACA plans began in 2021 as part of the COVID-19 relief law, the American Rescue Plan, and were extended through 2025 with the passage of the Tax Reduction Act. President Biden’s inflation in 2022.

The ACA has always included subsidies to help consumers pay premiums and other costs since it took effect in 2013. But the new, expanded subsidies — which shield enrollees from some premium costs and expand eligibility to the wealthiest Americans — are set to expire next year unless Congress decides to extend them again.

Hilary Schneider, director of the Maine Health Insurance Marketplace Office, said at a recent news conference that if the subsidies expire, “thousands of Mainers will likely drop their coverage because it will be too expensive.”

About 62,500 Mainers are insured by the ACA, and the Congressional Budget Office estimates that enrollment would decline by 17% in 2026 if the subsidies expire. In Maine, that means enrollment is expected to fall to about 52,000 in 2026, while nationally, enrollment would fall from 22.8 million in 2025 to 18.9 million in 2026.

To subscribe to a plan whose coverage would begin in January, go to www.coverme.gov. Although registration begins Friday and ends January 15, the CoverME.gov The website allows consumers to preview the packages that will be available.

If the subsidies are not extended, premiums would increase in 2026. The amount would vary widely depending on a number of factors – such as the type of plan chosen, age, income and family size – but , on average, premiums would increase by several hundred dollars. dollars. The enhanced subsidies currently make plans cheaper by $705 a year on average, according to an analysis by KFF, a health policy think tank.

Although premium costs vary, many Mainers can qualify for individual plans for around $100 to $300 per month.

Frank Wu, co-founder of Taro Health, an insurer that offers plans in the Maine market in Cumberland, York, Lincoln and Sagadahoc counties, said the expiration of the subsidies poses a “threat to the population of the market “.

“Most people will experience a direct increase in out-of-pocket expenses,” Wu said. “Some people will look at increasing their premiums and choose to become uninsured. »

The fate of the subsidies could depend on the results of the federal election, as Republicans have generally been more hostile to the ACA, with former President Donald Trump suggesting he would try again to repeal and replace the law which was the ACA’s signature legislative achievement. Obama administration.

Meanwhile, Democrats, including Vice President Kamala Harris, generally support the ACA and increased subsidies. A bill pending in Congress would make the enhanced grants permanent.

U.S. Sen. Susan Collins, Republican of Maine, is a notable exception among Republicans in that she has joined Democrats opposed to repealing the ACA. Collins was one of three Republican senators to vote to save the ACA during the 2017 repeal attempts, which failed by one vote.

Interviewed by the Press Herald, Collins spokeswoman Annie Clark said Collins believes Congress should look at “the appropriate level of subsidies and their cost.” She supports reform, but not repeal, of the ACA. Collins voted against the American Rescue Plan and the Inflation Reduction Act which contained the subsidies, in addition to many other Biden administration priorities.

Meanwhile, U.S. Sen. Angus King, Maine Sen. and Democratic U.S. Reps. Chellie Pingree and Jared Golden all said they favored extending the grants when asked by the Press Herald this week.

“Congressman Golden supported the expansion of premium tax credits in the IRA because of their success in reducing health insurance costs for Mainers. He is in favor of extending them again,” said Mario Moretto, Golden spokesperson.

Pingree, in a statement, said that “if these credits expire, families will face unaffordable premiums, especially in rural areas where access to care is already limited.”

Schneider said many Maine households, self-employed workers and small business owners rely on the ACA for affordable and predictable coverage.

For small business owners, if the grants expire, that money can’t be used to invest in their business, making it harder to grow their business and hire more workers. Losing the subsidies would have knock-on effects across the economy, she said.

“When premiums eat up more of a household budget, that means less money that can be spent on services, food and discretionary items,” Schneider said.

Copy story link