More people may face gaps in insurance coverage, have trouble affording medical care or not be able to pay for coverage if certain Affordable Care Act subsidies aren't renewed next year, the Commonwealth Fund said Thursday.
The independent healthcare research organization's 2024 report on health insurance found 44% of Americans are underinsured, face coverage gaps or are uninsured, despite improvements in lowering the number of uninsured citizens. In its 2022 report, the group pegged the percentage at 43%.
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In 2022, the Biden Administration extended enhanced subsidies that made marketplace plans more affordable through 2025 after which they will expire. It planned to further extend the subsidies past next year. It is uncertain what will happen in a Trump administration.
Commonwealth's report said a permanent extension of the subsidies is necessary to keep insured Americans from falling through the cracks.
"Without these credits, annual premium costs for consumers in marketplace plans will spike by an average $705 [a year] and an estimated 4 million people could lose their coverage," said Sara Collins, Commonwealth's senior scholar and vice president for health care coverage and access and tracking health system performance. "Some of the biggest coverage losses would be in states, like Texas and Florida, that have not expanded their Medicaid programs."
Many speculate the subsidies will not be renewed. President-elect Donald Trump last week chose Robert F. Kennedy Jr. as Health and Human Services secretary and earlier this week said Dr. Mehmet Oz would lead the Centers for Medicare and Medicaid Services.
Here are other findings from the report.
- 56% of consumers are adequately insured
- 23% of people are underinsured, meaning they have health insurance but the coverage does not allow for affordable healthcare access Of this group, 66% receive insurance through their employer
- 12% of people have experienced coverage gaps with their insurance
- 9% are uninsured
