By Zamone Perez
Virginia News Connection
Republicans in Congress did not vote on an extension of Affordable Care Act tax credits before the new year began. Now, premiums on the marketplace are set to rise significantly.
Nearly 400,000 Virginians will pay see their yearly premiums increase by an average of over $700, and another 350,000 people are set to lose their health insurance entirely, according to Protect Our Care.
A vote on an extension of the tax credits may still be on the table for later this month, as Democrats and a couple Republicans signed a discharge petition to force a vote on extending the credits.
Beth O’Connor, executive director of the Virginia Rural Health Association, said the subsidies allowed people to access health insurance when they otherwise wouldn’t have been able to.
“So, the tax credits essentially have allowed people who don’t have employer-subsidized health insurance,” said O’Conner, “to be able to get health insurance for themselves and their families at a rate that they can afford.”
While Democrats are largely in favor of an extension, Republicans in Washington are deeply divided on the issue, with House Speaker Mike Johnson cancelling a vote in December.
Moderates wanted a short extension, while more conservative Republicans demand spending concessions if an extension is passed.
A rise in health insurance premiums and a flood of people losing their health insurance spells trouble for hospitals, especially in rural communities. O’Connor said rural hospitals and emergency rooms could be some of the hardest hit by a surge of people becoming uninsured.
“It makes it harder for hospitals, especially for rural hospitals who have a high percentage of people who don’t have insurance, to be able to pay their bills and keep their doors open,” said O’Conner. “If a higher percentage of the population doesn’t have insurance, that means those people are likely to wait until a problem is very bad to see the doctor.”
According to Protect Our Care, the loss of ACA tax credits will also cause Virginia hospitals to lose $92 million in funding.