During the COVID pandemic, Congress enhanced tax credits that lowered the monthly premium for Health Insurance Marketplace plans. There had always been financial help for low-income Americans, but people with higher incomes were also able to get a lower monthly payment.
Last year, Congress didn’t renew that enhanced subsidy.
Tierney Queen-Stewart is with Cover Montana, which helps people shop for Marketplace plans.
“We saw a lot of people choose a lower tier of coverage this year but probably have higher out-of-pocket costs when they’re actually seeking care,” she says.
It’s unclear just how many Montanans downgraded their plan. But federal data from earlier this year shows enrollment declined about 11% as people canceled their coverage, likely because of the higher monthly premium.
Justin Lo is a researcher with KFF, a nonpartisan health policy research group. Lo expects to see a larger drop in enrollment as more data comes out. He points to a KFF survey asking people about the affordability of their health plan.
“Seventeen percent thought they weren’t going to make it through the year and make all their payments. The attrition will continue throughout this year.”
Montanans will have fewer coverage options this year because PacificSource dropped out of the Marketplace. The remaining two insurers have proposed double-digit price hikes for some plans.
But people still receiving a tax credit may not see much difference in what they pay.
“The subsidies should also increase to help cover that increase in cost,” Queen-Stewart says.
However, people who don’t qualify for financial help will see their monthly premium go up. Queen-Stewart says people should always shop around. There’s also free help to compare options.
