Tag: employer-based health coverage

The longest government shutdown in U.S. history is finally over after President Donald Trump signed a stopgap spending bill narrowly approved by the House last week, but your employees’ healthcare is still in trouble.

Tax credits that give entrepreneurs and their employees — and even solopreneurs — access to affordable healthcare through the ACA marketplace are set to expire at the end of this year. A study by the Kaiser Family Foundation estimates costs will soar by 26 percent — a combination of the projected loss of federal subsidies and the general increase of healthcare costs.

Democrats, and even some Republicans, are working to extend the benefit before rates skyrocket in January, but the House won’t vote on it until mid-December. Open enrollment began on Nov. 1 and ends in mid- to late January, depending on the state. The timing is less than ideal, but states are reassuring consumers that the plans they choose now are not “final.” They’ll have the option to change plans once the House votes in December. Anyone who doesn’t want to pay higher rates or choose a plan with less coverage has the option to wait until January to sign up for a new plan, but that means their insurance won’t kick in until February, Politico reported.

“We are hearing folks who simply cannot believe what they are looking at,” said Audrey Gasteier, executive director of the Massachusetts Health Connector, told the publication. “Folks who have surgery scheduled in the new year [say those plans are] in question now because they are not sure if they can stay covered.”

If the subsidies are approved without changes, ACA plans will be updated with the new rates. However, things could get complicated if Republicans successfully impose income caps and “fraud guardrails” on people’s eligibility for the subsidy. President Donald Trump has also floated the idea of issuing the subsidies as a “direct payment” to consumers, bypassing the insurers — a move policy experts told Politico would “lead to the collapse of the exchanges.”

Some state exchanges now require insurers to generate two rates — with and without the subsidies — to show consumers what they could be paying. These states say they’re working to get pricing information out to consumers as soon as possible.  

“State marketplaces will all do whatever needs to be done to get those tax credits out to our consumers,” Michele Eberle, executive director of Maryland Health Benefit Exchange, told Politico. “We are ready to do it and poised to do it. We will make it happen.”