Enhanced subsidies for Affordable Care Act Marketplace (ACA) plans are set to expire at the end of this year unless they are renewed by Congress. Oklahoma Insurance Department Commissioner Glen Mulready said Oklahomans could see substantial increases in health insurance premiums if they aren’t extended.
About 300,000 Oklahomans rely on ACA Marketplace plans for their coverage, according to a press release from the Insurance Department. It said the state saw a significant increase in enrollment between 2021 and 2024 through these federal enhanced Advanced Premium Tax Credits. They were introduced under the American Rescue Plan Act and extended through the Inflation Reduction Act.
They provide additional assistance to those who are already eligible for the regular tax credits and expanded eligibility for premium tax credits to enrollees with incomes above 400% of the federal poverty level (FPL). According to the press release, many enrollees pay $0 monthly for coverage through the seven insurance carriers operating in Oklahoma’s Marketplace.
If the enhanced subsidies expire, costs will rise. The average cost of a benchmark silver plan for an Oklahoma enrollee is $58 a month this year with them in place. That could jump to about $153 a month next year if they expire, according to the release.
Those over 400% of the FPL would also no longer be eligible if they aren’t extended.
“A permanent extension of the $338 billion in enhanced federal health insurance subsidies is looking more unlikely,” Mulready said. “While there might be other potential solutions considered by Congress this year, Oklahoma’s leaders and citizens need to be prepared for the consequences of these subsidies ending with significant changes in health insurance costs anticipated.”
The release states higher costs could lead to more consumers leaving the Oklahoma Marketplace and transitioning to Medicaid or becoming uninsured. It also adds that younger, healthier individuals are more likely to drop coverage due to financial concerns, leaving fewer healthy people in the Marketplace, which could further increase premiums.
“Oklahomans and my fellow elected leaders must understand the potential impact of the expiration of these federal subsidies,” Mulready said. "While I am still hopeful Congress can come to a compromise that lessens the impact of the impending tax credit cutoff date, the Oklahoma Insurance Department remains committed to monitoring this situation and providing updates as they become available.”
