Health Insurance Costs: A Looming Crisis for Millions

Having to pay double for your health insurance. That's what could happen to millions of Americans if federal subsidies don't get extended. Andrea Deutsch, the mayor of a small Pennsylvania town, is one of those who could be hit hard. She already pays $638. 38 a month, which is half of what she'd owe without the subsidies. But these subsidies are set to expire at the end of 2025, and states say they don't have the money to fill the gap. Health insurance isn't cheap, and many people rely on these subsidies to afford it. Without them, premiums could skyrocket by over 75% on average. That's a lot of money! And it's not just Deutsch who's worried. States like Pennsylvania and California are also scrambling to find solutions. They know that if these subsidies go away, many people will drop their insurance. Some people think this is a chance to fix the Affordable Care Act (ACA). They say it destroyed the market for private insurance for self-employed people. But others warn that letting the subsidies expire could make premiums even higher for everyone. That's because healthier people might stop buying insurance, leaving only sick people on the exchanges. And that's expensive! States are looking for ways to keep premiums down, like reimbursing insurers for their most expensive customers. But most states don't have the money to do this. They're worried about a big drop in insurance coverage if the subsidies disappear. So, what's the solution? It's a tough question. Extending the subsidies would cost a lot of money. But letting them expire could leave millions of people without affordable health insurance. It's a tricky situation, and it's up to the government to find a way out of it.