The One Big Beautiful Bill Act (OBBBA) could lead to over 10 million Americans losing their health insurance by 2034. This is largely due to its plan for a $1 trillion cut in federal spending related to health insurance and Medicaid.
So, what does this mean for everyday Americans? Losing health insurance can be costly. As noted by the Congressional Budget Office, the impact will be significant.
Skyrocketing Premiums Ahead
Since 2014, the premium tax credit (PTC) has helped people afford their health insurance. This assistance will end by 2026. The implications are clear: fewer people will enroll in subsidized plans, and more will go uninsured. Without these credits, the average health insurance premium could rise by 7.9% annually by 2034, according to the CBO.
For example, if you currently pay about $460 for a subsidized plan, you could face an increase to over $1,100 without the credits. This could be a staggering 136% jump.
Rising Out-of-Pocket Expenses
The Kaiser Family Foundation (KFF) reports that over 24 million people are enrolled in Marketplace plans, with 92% receiving financial aid. If they lose that aid, out-of-pocket costs will soar. A basic doctor visit can cost between $150 and $300, and a simple X-ray might exceed $1,000.
In fact, last year, the average U.S. worker faced over $1,100 in out-of-pocket healthcare expenses. The financial burden from unexpected medical needs can be overwhelming, especially for those without insurance.
Medical Bankruptcies: A Looming Crisis
Almost half of U.S. adults cannot afford a $500 medical bill. Medical debts are a leading cause of bankruptcy. A recent study found that around 36% of households are dealing with medical debt. Bankruptcy can be a costly solution, often ranging from $400 to $3,000 to file.
Ryan Brown, CEO of Essential Benefit Administrators, highlights that going without health insurance significantly increases the risk of financial difficulties due to unpaid medical bills.
Interestingly, a survey revealed that 67% of those filing for bankruptcy cited medical bills as a major factor. Thus, many uninsured individuals may face huge financial pressures if they encounter medical issues.
Finding Solutions
If you lose your insurance, there are still options. Experts recommend speaking with employers about more affordable health coverage packages, such as minimum essential coverage plans, which may cost between $100 and $700.
This situation highlights the importance of being informed and prepared. The changes ahead could make healthcare far less accessible for many Americans.
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Congressional Budget Office, Health Insurance Marketplaces, health insurance, health insurance costs, premium tax credit, Health
