Insurance premiums spike as federal tax credits near expiration

SOUTH BEND, Ind.-- Hoosiers shopping for health insurance on the Affordable Care Act marketplace are seeing prices far higher than last year, with some plans doubling or even tripling —according to local insurance agents.

A recent study found ACA premiums are up by an estimated 26 percent nationwide.

Tony Letcher, an insurance broker with Health Markets, says one major factor is the possible end of enhanced premium tax credits — subsidies expanded during the pandemic to make insurance more affordable.

“These are called enhanced premium tax credits. Those are set to expire at the end of 2025,” Letcher said. “The government shutdown… that’s what the Democratic Party was pushing for was an extension of those subsidies… they didn’t pass it.”

But insurers say subsidies aren’t the only issue.

Anthem told ABC57 in a statement that people enrolled in ACA plans are using more complex and high-cost healthcare, from emergency rooms to specialty medications, driving premiums even higher and forcing families to make tough decisions ahead of the enrollment deadline.

Scott Zent with Thorn Insurance says he’s seeing that pressure firsthand.

“I’m seeing the fear in their eyes… how do I make a decision between either putting food on the table, putting gas in my car or having health insurance?” Zent said. “I just don’t feel like anybody should be put in that position.”

Zent says Hoosiers still have options but need to act quickly.

“My best advice is to reach out to a licensed health insurance agent,” he said. “Even the options with higher deductibles, higher co-pays are better than not having anything. The last thing I wanna see is people get into medical bankruptcy because something happens health-wise.”

Open enrollment runs through Dec. 15 for coverage beginning Jan. 1, with a second window through Jan. 15 for plans starting Feb. 1.