Health insurance rates have surged for many Californians recently, especially following the end of Affordable Care Act (ACA) credits. In Humboldt County, those using Covered California are facing an average hike of $182 per month. For middle-income earners statewide, the climb is even steeper, averaging around $500 more monthly.
Jessica Altman, the Executive Director of Covered California, has observed a wave of confusion and concern. Many are shocked to see their premiums double. “What am I supposed to do?” is a common question she receives.
This increase hits various groups hard, including small business owners, gig workers, and those whose employers don’t offer health insurance. The additional financial burden comes after the federal government provided more tax credits during the COVID-19 pandemic, which have now expired.
In Humboldt County, about 7,500 people rely on Covered California for their insurance. So far, enrollment has remained stable compared to last year, but new sign-ups have dropped by 30%.
The end of subsidies is especially tough on rural areas, where costs are typically higher. Tory Starr, CEO of Open Door Community Health Centers, warns that the repercussions will extend beyond just premiums. If people drop their coverage due to cost, they risk becoming more ill without access to preventive care. “People’s access to care is directly linked to having insurance,” Starr points out. Open Door serves 20,000 patients, with over 7,000 currently utilizing ACA subsidies.
Health organizations, including Providence, share similar concerns. They’ve noted that some community members may opt for less or no insurance, leading them to seek less care. Shannon Garcia, a spokesperson for Providence, stated their organization is striving to provide care for all, regardless of insurance status.
There are also looming changes that could affect Medi-Cal and Medicare recipients. According to the U.S. Office of Management and Budget, millions may lose health coverage in the next decade due to new requirements.
Quick political shifts have not helped. Recent efforts to extend ACA subsidies faced pushback despite a bipartisan bill that passed in the House. On Thursday, former President Donald Trump unveiled a plan aimed at tackling rising costs, which includes money for health savings accounts and some measures to lower drug prices. However, many remain skeptical about its effectiveness in offsetting lost tax credits.
As the enrollment period continues, Altman encourages everyone to explore their options despite the challenging landscape. The situation is complex, but understanding available choices is crucial for maintaining health coverage.
For ongoing updates on health insurance and related policies, you can visit Covered California and the Centers for Medicare & Medicaid Services.
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