Insurance, I Don't Need Insurance, I Cant Afford It Anyway!!

 Insurance, I Don't Need Insurance, I Can't Afford It Anyway!!

The Affordable Care Act (ACA) Federal Subsidies were not approved in the Big Beautiful Bill.  The Democrats are pushing to have funding added for another year in the Continuing Resolution (CR), but Congress has been at a standstill.

If you could have paid for insurance with help, you are now at jeopardy of not being able to afford it in 2026.

Why should you care?  You get insurance through your work or Medicare Supplemental or Gap Insurance.

YOU SHOULD CARE, because without approval or support for continuing federal funding, your premiums are likely to increase too.  How? The number of people expected to lose or stop coverage through the Insurance Marketplace is expected to increase dramatically.  The number of uninsured individuals will likely increase, driving all insurance plans to absorb the costs.  Your employer isn't likely to change the percentage they pay, resulting in higher costs for you.

If you have to purchase your own insurance, this is what you can expect...

Facts: 

·       The ACA has a sliding scale to help people whose incomes fall between 100% and 400% of the federal poverty level. People above that level would not get any subsidy. Currently, they could still get insurance, their premiums would be about 8.5% of their income. Or higher.      For a single-person household, 400% of the federal poverty level is about $62,600 a year.

·      If more people go without health insurance, hospitals could be affected. “When more people are uninsured, it leads to more uncompensated health care strain on the health system. Under federal law, hospitals are required to provide care to people who present at the emergency room regardless of insurance status or ability to pay. This causes hospital costs to increase, causing insurance companies across the board to increase rates to cover the uninsured.

·      Only nine states currently offer support to help with Federal tax credits.  Virginia does not offer help but is considering additional support that will cost $236 million per year.  Commonwealth taxpayers will need to cover this cost.

Impacts:

Based upon data from the State Corporation Commission (SCC) a family of four making $60k per year pays 1.47% or $74 per month.  In 2026 without Federal help, the insurance cost will be 5.96% or $298 per month.

Currently, the cap of premium is 8.5%.

The Virginia Bureau of Insurance reported in August that marketplace rates will climb by a minimum 20.5% in 2026, the steepest increase since 2018. Some users could see increases of 40% or more. Insurers expect some healthy Virginians to drop coverage due to higher premium costs, which would destabilize the risk pool and higher rates for those who remain.

Increases are not going to be felt only by those purchasing Marketplace insurance plans.  Medicare has already published their reduced coverage and higher deductibles for 2026. Everyone will be paying more. I’ve already seen my supplemental premiums increase and expect another one in 2026.