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With subsidies in jeopardy, thousands of Montanans face health insurance cost hikes

The federal marketplace allows people who don’t get health insurance through their employer to buy their own plan. Roughly 77,000 Montanans buy that coverage.

In 2021, Congress passed subsidies that help cover premiums based on a person’s income. But those subsidies will expire at the end of the year. The debate whether to renew them is at the heart of the fight that led to the federal government shutdown.

But premiums in Montana are already set. It’s likely too late for insurance companies to make changes before open enrollment on Nov. 1. Premiums for Montanans are increasing between 11% to 29%.

Cynthia Cox is with KFF, a nonpartisan health policy research group. Cox says premiums increase every year. But they’re increasing more because the tax subsidies are expiring.

“Instead of charging that 18% increase, they would have charged a 14% average increase.”

She says consumers will only experience major price hikes if the tax credits expire.

“Because what they pay is just a set percent of their income. It’s not what the insurance company charges.”

If Congress renews the tax credits, it means the federal government would pay more, and costs for enrollees would largely stay the same. But if they expire, Montanans will bear most of the cost.

You can find out how much more you might pay through KFF’s premium calculator.

Aaron joined the MTPR team in 2019. He reports on all things in northwest Montana and statewide health care.

aaron@mtpr.org or call/text at 612-799-1269
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