HOUSTON – As open enrollment for healthcare coverage kicks off, Texans are facing significant increases in their insurance premiums.
The cause? The expiration of crucial tax credits within the Affordable Care Act (ACA), often referred to as Obamacare. These changes are leaving many with higher monthly costs, and for some, the choice to keep their healthcare plans is becoming a tough decision.
The Expiration of ACA Tax Credits
This past Monday, the Senate passed a spending plan that excluded an extension of the ACA tax credits that helped keep premiums affordable. For millions of Americans, especially in Texas, that means healthcare premiums are rising by an average of 35% or more.
Gerardo Ramirez, a Houston-based health insurance agent, explains that the enhanced premium tax credits — a temporary measure introduced to help lower costs — are set to expire in December 2025. This credit was designed to make healthcare more accessible, but with its end, many Texans are now seeing their premiums skyrocket.
“We’re seeing premiums jump by nearly 35% here in Texas,” says Ramirez. “A family that was paying $600 a month for coverage is now facing a bill of $1,000. For many middle-class families, that’s a huge increase.”
Who’s Affected by the Price Hikes?
According to the Texas Tribune, about 1 million Texans with ACA plans are over the age of 45, and many of them are now facing monthly premiums that exceed $1,000. For some, these new rates are simply unaffordable, leaving them with difficult choices.
“People are being forced to either pay for their more expensive existing plans, find a cheaper option with higher deductibles, or drop their insurance entirely and hope for the best,” says Ramirez.
Some families have already made the tough decision to forgo coverage due to the high costs. “We’ve spoken with a few families who’ve decided they just can’t afford it anymore. They were waiting to see if the credits would be extended, but now they’re faced with the reality of the price hike,” Ramirez adds.
Limited Alternatives for Low-Income Families
For low-income residents of Harris County, there is one potential alternative. However, it’s only available to those who earn less than around $20,000 a year and meet other specific qualifications. Ramirez notes that even with this option, the Affordable Care Act remains the most affordable coverage for many — but it’s still out of reach for some families due to the cost increase.
“Unfortunately, if people don’t qualify for the gold card, the ACA is their most affordable option — but it’s still too expensive for many,” he says.
The Bigger Picture: How Rising Healthcare Costs Impact Everyone
Ramirez also points out a concerning ripple effect from rising premiums. Hospitals, which are legally required to treat patients regardless of their ability to pay, may pass on the cost of unpaid bills by raising the prices of treatments for everyone.
“As premiums go up and more people drop their coverage, hospitals are going to face the financial burden of treating uninsured patients. They may increase the costs of services across the board to make up for those unpaid bills,” Ramirez explains.
What Can You Do?
If you’re facing higher premiums this open enrollment season, it’s essential to shop around and explore all available options. Whether it’s switching to a different plan, considering a higher-deductible option, or seeking help from a health insurance navigator, there are ways to manage the impact of these price hikes.
However, for many Texans, the new costs could mean sacrificing coverage, leaving them vulnerable to higher medical bills and potential financial strain in the event of a health crisis. As the future of the ACA tax credits remains uncertain, it’s clear that healthcare access in Texas and beyond could face serious challenges in the coming years.
Stay informed, explore your options, and make sure to consider both your current health needs and financial situation when choosing your plan.