Healthcare premiums expected to rise with new funding bill, Healey urges extension of tax credit

There’s new concern that a deal to reopen the federal government could come with a major price tag for people who rely on plans through the Affordable Care Act.

For millions of Americans, including 340,000 Massachusetts residents, Marketplace insurance is what keeps doctor visits and prescriptions affordable. However, that stability could be shaken if temporary subsidies that helped lower costs aren’t renewed in full. Governor Maura Healey is now calling on Washing to act soon.

“What needs to happen now is republicans and the president need to get back together in congress and work through a vote to make sure these tax credits are extended,” Gov. Healey said during a press conference Monday.

The enhanced subsidies, first expanded during the pandemic, have helped hold down premiums for the past few years. Without them, experts like MIT economics professor Jonathan Gruber, say prices could jump by as much as $25,000 a year for people like small business owners or entrepreneurs.

“That person is the person who does not happen to be lucky enough to work for a firm that offers health insurance,” Gruber explained.

Some argue it’s a tough balance; lawmakers are trying to rein in federal spending, while keeping health coverage within reach for millions. As lawmakers vote to fund the government, many families are watching closely, wondering whether that deal to keep Washington open could also make their own budget a lot tighter, with some Americans likely being forced to forgo having insurance at all.

“If 4 to 5 million people lose health insurance, we’re talking about on the order of 5,000 extra deaths everything year because we have not extended these subsidies,” Gruber put into perspective.

Governor Healey is calling on D.C. because she said there’s not much the state can do if these tax credits are not extended, other than working with local partner to help residents find a plan that works for them.

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