SACRAMENTO, Calif. — Nearly 2 million Californians could be priced out of their health insurance when the American Rescue Plan expires at the end of the year, according to a Covered California analysis.
1.8 million people in California have health insurance through Covered California.
Low-income households could see their premiums double. Not only would premiums increase for everyone, but middle-income households would no longer qualify for financial help.
“As the federal response to the pandemic, people were able to get coverage at much lower prices than they have been before," Covered California spokesperson James Scullary said. "Really saving them money at a time where we had a lot of uncertainty going on.”
Covered California predicts that 1 million lower-income households will see their premiums double if the American Rescue Plan expires. 150,000 are predicted to drop their insurance altogether.
“Then people would fall back to the original guidelines of the Affordable Care Act, which did provide valuable financial help to consumers, just not at the same level," he said.
Scullary said those previous guidelines did not allow middle-class Californians to qualify for financial help. The American Rescue plan did.
“Anyone above and beyond that would be in jeopardy of losing all of their financial help,” he said.
People who don’t pay anything could see their rates go up to $75 a month. Others will pay hundreds more each month as rates are on a sliding scale based on income.
Health Access California's Executive Director Anthony Wright said there’s one saving grace: it’s an election year.
"We think that it's actually possible, if not likely, that Congress does extend these subsidies, that it's in nobody's interest to have premium spikes be announced and people start to get those notices in the fall of an election year," Wright said. "So we think that there is a there is a need to do it, but we need Congress to do it soon.”
Wright said he’s hopeful that Congress will pass a permanent funding plan so the issue will not have to be revisited.
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