Government Shutdown Looms Next Month: The Role of Obamacare Explained
Millie Haas, a disabled resident of Okeechobee, Florida, who battles three types of cancer and a neurological condition, relies on Obamacare to afford seeing the 11 specialists who care for her. Haas, along with millions of other Americans, benefits from enhanced subsidies enacted during the Biden administration, which are set to expire at the end of 2023.
The extension of these subsidies has become a central factor in the debate over funding the federal government for the coming fiscal year. Roughly 92% of the 24 million people who signed up for 2025 Obamacare coverage receive assistance, and the renewal of these subsidies could cost approximately $30 billion.
GOP leaders are under pressure to extend the enhanced subsidies, but GOP fiscal conservatives are vowing never to come to the aid of the program. This divide has led to a stalemate, with Democrats warning they will not vote for a stopgap bill to keep the government operating if it doesn't include a measure to continue the beefed-up assistance.
In Idaho, about 20% of the state's enrollment (approximately 25,000 residents) are expected to cancel their coverage if the enhancement lapses. Across the country, more than half of those who could become newly uninsured due to the expiration of enhanced subsidies live in Texas, Florida, Georgia, and North Carolina.
One such resident is Anna, a resident of Marietta, Georgia, who pays $82 a month for her Obamacare coverage. She fears her premiums might increase by 50% to $120 next year if the subsidies are not renewed. Millie Haas and her husband, a retired maintenance worker, currently pay $124 per month for health insurance through Obamacare due to enhanced federal subsidies. Without the renewal, they could face a significant increase in their monthly premiums.
Insurers are pressuring lawmakers to act this month to avoid disruption, and are reviewing their options if that doesn't occur. The Blue Cross Blue Shield Association has stated that plans are committed to operationalizing an extension no matter when it happens.
Virginia GOP Rep. Jen Kiggans, along with a bipartisan group of colleagues, introduced a bill that would extend the subsidies for another year. Senate Minority Leader Chuck Schumer has stated that ACA tax credits must be expanded and that their non-renewal could result in Americans having to pay thousands more each year and potentially losing their lives.
Millie Haas has urged lawmakers on Capitol Hill to talk to their constituents, particularly those on fixed income, to avoid the loss of essential services like medication and food. She and many others like her are hoping for a resolution that will ensure they can continue to afford the healthcare they need.
