Despite months of warnings, weeks of haggling and a government shutdown orchestrated to prevent it, the Covid-era subsidies that help Americans pay for Obamacare health plans will expire on Dec. 31. As a result, more than 20 million Americans will see higher premiums next month, causing many of the worst affected to drop their insurance altogether. There’s still a chance Congress can prevent this self-inflicted mess — but neither party has come close to addressing the root of the problem.
Since 2014 the Affordable Care Act has subsidized premiums for “lower earners,” meaning those with incomes below 400% of the federal poverty level. During the pandemic, Congress increased the subsidies and raised the income threshold, a provision extended by the Inflation Reduction Act. These higher-income enrollees — among them, owners and employees of small businesses and the self-employed — are about to see their premiums rise by thousands of dollars annually.