"A set of more generous subsidies put in place as a pandemic relief measure is on track to expire at the end of 2025. If allowed to lapse, premiums will soar for many people who rely on health insurance purchased through marketplace plans under the Affordable Care Act. The looming health insurance premium price hike is known as the "subsidy cliff.""
"A helpful calculator from the health policy group the Kaiser Family Foundation demonstrates how dramatic that change might be for American families. In one example, a family of four in West Virginia making $125,000 could go from paying $885 to $2,918 each month - an increase that could easily put insurance out of financial reach. Because states have their own rules, income limits and subsidies on top of the federal framework, any pain from newly unaffordable premiums will be felt unevenly around the country."
Enhanced pandemic-era subsidies for ACA marketplace plans are scheduled to expire at the end of 2025, creating a "subsidy cliff" that would sharply raise premiums. Millions of people who lack employer coverage—including self-employed, contract, and part-time workers, students, and early retirees—depend on marketplace subsidies to afford insurance. If the enhanced subsidies lapse, average monthly premiums for marketplace enrollees would increase about 75 percent, potentially putting coverage out of reach for many families. A Kaiser Family Foundation calculator shows dramatic examples, with some families facing monthly premium increases of thousands of dollars. State rules will make impacts uneven, and higher costs could push roughly four million people off the marketplace, increasing the uninsured population.
Read at Fast Company
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