How the Expiration of ACA Subsidies May Impact Health Care Coverage for Thousands in Rhode Island

Daniella Stark, who lives in Providence, currently pays just $45 each month for her health insurance. But she’s bracing for a jump to $217 as pandemic-era subsidies for the Affordable Care Act (ACA) go away at the end of the year. “It was a huge shock,” Stark shared. She had anticipated a more manageable increase, think about $100, similar to her pre-pandemic costs.

This change will impact millions across the nation. The White House has proposed extending these subsidies for another two years, but details remain unclear.

The ACA, or Obamacare, has helped about 48,166 Rhode Islanders get health coverage since its inception. During the pandemic, the federal government allocated around $60 million yearly to assist families in staying insured and broadening eligibility.

In 2022, the Inflation Reduction Act extended these subsidies until December 31 of this year. If they expire, HealthSource R.I., the state’s ACA marketplace, predicts that around 13,100 Rhode Islanders might lose their coverage, forcing others to face increased costs—likely doubling on average, according to John Cucco, HealthSource R.I.’s chief of staff.

Stark’s household earns about $60,000 a year, which sits below Rhode Island’s median household income of about $92,290. “I think I can find a way to make this work,” she said. “But for someone less fortunate, it’s a crisis.”

Experts warn that the expiration of these subsidies could shrink HealthSource’s customer base from 48,000 to approximately 27,000 by 2030, resulting in an annual loss of around $70 million as people stop paying for health care.

Shamus Durac, a health policy analyst at the Rhode Island Parent Information Network, noted that the ACA subsidies from 2014 weren’t built for the soaring health-care costs we see today. A recent report revealed that Blue Cross Blue Shield R.I., the state’s largest insurer, plans to raise its individual rates by 22% in 2026.

“Although the coverage used to be affordable, that’s no longer the case,” Durac explained. He emphasized the urgent need for the government to maintain these subsidies. Recently, Protect Our Healthcare R.I. tried to convince the state to launch a new premium assistance program, but budget constraints hindered progress.

If the subsidies vanish, the ACA marketplaces may need to narrow their enrollment windows, increase documentation demands, and limit health care access for low-income legal immigrants, as Cucco mentioned.

Durac expressed hope that the federal government would continue these enhanced subsidies, as they are crucial for the state’s health system, which is already struggling. Rhode Island’s hospitals are dealing with high patient occupancy rates and a lack of primary care providers.

As for Stark, her worries grow. Her husband was diagnosed with a serious health issue back in 2017, and she fears that rising costs could lead to dire situations. “I’m just hoping for the best,” she said. “Rhode Island has made great choices for its people, but finances are limited.”

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