WA Democrats urge Congress: Extend ACA subsidies now
Democrats in Washington state and Congress are urging Republicans to extend Biden-era health insurance subsidies, while warning of the consequences if those credits are allowed to expire at the end of the year.
Why it matters: Without the subsidies, an estimated 80,000 Washingtonians are expected to no longer buy health insurance on the individual market, leading to higher premiums for other policyholders, state Insurance Commissioner Patty Kuderer told reporters Friday.
By the numbers: Kuderer's office this week approved an average premium rate increase of 21% next year for health care plans bought on the state exchange, the public insurance marketplace created under the Affordable Care Act.
- Insurers pointed to the pending expiration of the enhanced premium tax credits as a key driver of the rate increases, Kuderer said.
What they're saying: "What will happen is those who are younger and healthier will self-select out," Kuderer told Axios.
- "They'll drop their coverage, which means we're going to have a sicker pool that's being insured," driving up the cost of coverage, she said.
Context: Next year's planned rate increases on Washington's health care exchange are nearly twice as high as the 2025 hikes, and far higher than the 8.9% increase approved for 2024.
- U.S. Rep. Suzan DelBene (D-Medina) estimated that with the expected loss of subsidies, Washingtonians on the state exchange are on track to spend an average of $1,300 more on premiums per year.
- "That's an enormous jump that will make coverage unaffordable," said DelBene, who was joined Friday by Gov. Bob Ferguson, U.S. Rep. Kim Schrier (D-Sammamish) and House Democratic Leader Hakeem Jeffries at a press event in Bellevue.
The big picture: Some Democrats are pushing to extend the enhanced insurance subsidies this month as part of a deal to continue funding the federal government past Sept. 30.
- Yes, but: It's unclear whether Democratic senators are willing to withhold their votes for a government spending bill over the issue, risking a government shutdown.
What we're watching: Kuderer said that if Congress votes to extend the enhanced Affordable Care Act subsidies, there's still time to lower next year's rates — but the vote would have to happen by the end of the month.