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More expensive & harder to access
The Congressional Reconciliation Bill and the loss of federal tax credits would result in 16 million Americans losing health coverage, including 8.2 million enrolled in Health Insurance Marketplaces. The loss of millions of covered lives from the Marketplaces will make healthcare more expensive and harder to access, create a strain on healthcare systems, and hurt small businesses.
At a virtual press conference, leaders from across the country detailed the impacts on access to private health insurance from the Reconciliation Bill passed last month by the House of Representatives. Combined with the looming expiration of federal tax credits at the end of the year, these changes would significantly increase the uninsured rate, harm healthcare delivery, and increase costs in every community across America.
1 in 7 Americans impacted
Today, a record 24 million Americans get their private health insurance through the Marketplaces, and an estimated one in seven Americans have depended on the Marketplaces for coverage at some point during the 12 years since the Affordable Care Act (ACA) was enacted.
“The proposed reconciliation bill doesn’t just make coverage more expensive—it makes it harder to get. Marketplace enrollees could face large increases in premiums and new red tape that makes it a burden to get the coverage they need,” said Devon Trolley, Executive Director of Pennie, Pennsylvania’s Health Insurance Marketplace. “This combination is a one-two punch that puts millions at risk of going uninsured—not because they don’t qualify, but because they can’t afford it or can’t navigate the new bureaucracy.”
“ACA coverage is a lifeline for Maryland’s rural and underserved communities. Rolling it back would risk the health and well-being of those who need care the most,” said Jonathan Dayton, Executive Director, Maryland Rural Health Association.
Few affordable options left
The Congressional Budget Office estimates that 8.2 million people will lose Marketplace coverage, including coverage losses from the expiration of the enhanced tax credits. Others would lose coverage under Medicaid, and there are no other affordable options for those who most need help affording plans.
Analyses from Health Insurance Marketplaces indicate that the bill could have significant cost impacts for their enrollees. Preliminary analysis from Rhode Island indicates $61.4 million in lost tax credits for its consumers, a 43% reduction of current funds. Pennsylvania predicts nearly $1.2 billion in tax credit losses, dollars that support consumers and the state’s health care system.
Uninsured Americans at risk
“The proposed changes in this bill would make millions of Americans uninsured, unhealthier, and vulnerable to financial disaster with just one medical emergency,” Covered California executive director Jessica Altman said.
The Affordable Care Act established Health Insurance Marketplaces, which allow hard-working individuals to purchase affordable health insurance plans that meet specific coverage standards. The Marketplaces enable consumers to view and shop for a variety of plans, all of which are required to cover essential health benefits. Twenty-two states operate marketplaces, either as fully state-run entities or in partnership with the federal Marketplace.
View more resources, including State Marketplace Network letters to Congress and detailed explainers about the Reconciliation bill here.
View a recording of the virtual press conference here.
The State Marketplace Network is a consortium of state leaders and staff dedicated to the operation of state-based health insurance marketplaces and state-based marketplaces that use the federal platform. Learn more at StateMarketplaceNetwork.org.