TL/DR –
Open enrollment has begun for millions of Americans, and many will see the cost of their premiums increase by over a thousand dollars as tax credits from the Affordable Care Act (ACA) near expiration. Some projections suggest that a 60-year-old couple in Nebraska making around $83,000 a year could see their annual premiums increase by over $22,000. There are concerns that 30,000 Nebraskans will lose Medicaid due to cuts and another 15,000 will lose health insurance coverage if the ACA credits are not extended, with 93% of enrollees depending largely on these subsidies.
“`html
ACA Tax Credits Expiration Set to Hike Health Insurance Premiums for Millions
The commencement of open enrollment this week was met with concern as tax credits under the Affordable Care Act (ACA) are due to expire soon, resulting in a hefty increase in premium costs for many Americans, some by over a thousand dollars.
Tax Credit History and Impact on Nebraskans
ACA credits were introduced in 2021 and extended until 2025 under the Inflation Reduction Act. Reports from the Department of Health and Human Services reveal that the number of Nebraskans subscribing to a Marketplace plan has risen from about 74,000 in 2015 to over 136,000 in 2025.
Chiquita Brooks-LaSure, former Centers for Medicare and Medicaid Administrator under the Biden Administration, stated in a recent press call that the U.S. achieved the lowest uninsured rate in history prior to these developments. She added, “It’s actually worse than what many of us predicted. Early estimates are finding that premiums have increased by 26%. Many people are seeing those their premiums skyrocket by hundreds to thousands of dollars.”
Brooks-LaSure emphasized that the ACA aimed to secure accessibility and affordability in the healthcare system, a goal that could be totally undermined if these credits are not extended.
Ripple Effects on Specific Income Groups
She gave examples of the impending effect on different income groups: “A 60-year-old couple in Nebraska that makes around $83,000 a year could see their annual premiums increase by over $22,000. A family of four earning $64,000 a year would see their annual premiums increase by almost $2,600.”
Adding to the financial burden, forecasts from the Congressional Budget Office suggest that a permanent extension of the tax credits could escalate the federal deficit by $350 billion by 2035.
Healthcare System and Subsidies
According to Omaha State Senator John Fredrickson, the healthcare system also heavily depends on these subsidies. Without them, private insurance companies might be compelled to hike their premiums too.
Impending Legislative Session and Anticipated Medicaid Cuts
The upcoming legislative session, set to start on January 7, is expected to focus on the budget. State Senator Fredrickson highlighted the urgency of addressing the implications of changes in federal law.
Amidst this, Kelsey Arends from Nebraska Appleseed anticipates that around 30,000 Nebraskans could lose Medicaid due to cuts, and another 15,000 could lose health insurance if the ACA credits are not extended. She pointed out that 93% of enrollees depend on these enhanced subsidies.
Arends also noted, “I want to be really clear that Nebraskans with the lowest incomes will be the folks hurt the most if the enhanced premium tax credits expire.”
Personal Experiences and Calls to Action
Tangible effects are already being felt by Nebraskans like Audrey Horn and her husband. Both have been on the ACA since 2019 as her husband’s job does not provide health insurance. Their premiums have already risen by $688 a month.
“So obviously, we’re not getting a free ride. We have insurance, we’re getting a little help with the premiums,” Horn said. Her sentiments were echoed by Brooks-LaSure, Fredrickson, and others on the call who urged Nebraskans to contact their congressional delegation to demand action.
Brooks-LaSure stressed that these cuts can still be prevented and Congress possesses the power to extend the credits and avert Medicaid cuts. “No one in this country should have to forgo health insurance because it is too costly. No one should face financial strains on their small business due to skyrocketing premiums, and no one should have to drive hours more for care because their rural hospitals shut down,” she added.
Meanwhile, Nebraska Representative Don Bacon, a member of a bipartisan group, has propounded principles for the extension and reformation of the ACA credits, which include a two-year extension and income cap.
However, Senate Majority Leader John Thune told Politico that any extension would need the full backing of the 60 Senate votes.
Copyright 2025 KOLN. All rights reserved.
“`
—
Read More US Economic News