LANSING — Michigan officials are warning that expiring healthcare subsidies could drastically raise rates for Michigan residents as soon as next week.
The American Care Act subsidies help millions afford their healthcare premiums, and are set to expire on Nov. 1 without congressional action.
The subsidies are also at the center of the federal government shutdown. Democrats have withheld their votes to fund the government as leverage to extend the program, and lawmakers still remained divided on a potential solution.
According to the Department of Insurance and Financial Services, over half a million Michigan residents are enrolled in the ACA’s individual market.
Officials from the department say that nearly 90% of Michigan patients qualified for the subsidy in 2024, saving an average of $380 a month.
The increases would hit some residents harder than others.
According to the left-leaning Center on Budget and Policy Priorities, a 60-year-old couple making $82,000 a year would see their montly rate skyrocket from $580 to $1,710.
“As a result, many residents may risk going without health insurance entirely,” said Joseph Sullivan, director of the DIFS Office of Innovation and Research. “These individuals may still get injured or sick and will need to seek care somewhere, even if they’re not insured.”
Officials also say that increased insurance costs could drive away mostly healthy young people, who may determine that the coverage isn’t worth it.
“This would worsen the risk pool and increase premiums for both subsidized and unsubsidized consumers, and potentially lead to more consumers and insurance carriers considering leaving the marketplace as a result,” Sullivan said.
The state encourages those enrolled inn the ACA to review their information during open enrollment, which starts Nov. 1. They also suggest people do this before Dec. 15.
More resources can be found at michigan.gov/healthinsurance.