JACKSONVILLE, Fla. — With Obamacare subsidies set to lapse at the end of the year, many Floridians will see their premiums rise, even if they don’t directly receive the subsidies.
An estimated 200,000 people living in the Jacksonville area who benefit from the COVID-era subsidies could see their monthly premiums double or triple if the tax credits are allowed to expire at the end of the year.
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But the impacts will also be felt by residents like Dr. Maira Martelo, who doesn’t receive the tax credits, but gets her health insurance through the Affordable Care Act Marketplace.
“The shocking part is that my premium for next year is gonna be higher than my mortgage. So, next year if I want to keep being a Mayo patient, I will pay $1,600 a month, which is absurd,” Matelo said.
Lorelei Salas, a former Supervision Director for the Consumer Financial Protection Bureau, explained that as many as 4 million Americans may drop their insurance plans entirely by the end of next year due to premium increases caused by the tax credits expiring.
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“The health insurance companies are going to have to make a profit somehow,” Salas said.
And she argued that will have ripple effects that even extend into the private market.
“Employers are about to see also the biggest spikes in the cost that they pay for health insurance for their employees of up to 9% or so, which they are likely to pass onto their employees,” Salas said.
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Matelo said in her case, she’s chosen to pony up the money to keep her plan, but it won’t be without sacrifices.
“I am gonna pay less to my retirement account so I can really find a way of balancing out because it’s my health care. You know, without health there is nothing. And you know, I am healthy for the most part,” Matelo said.
But Salas worries for those who already on tight budgets and are forced to go without insurance at all.
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“And what worries me more is that medical debt will just deepen for many, many people, which obviously in turn causes other problems,” Salas said.
Salas advised if you do end up going without health insurance, patients should consider going to nonprofit hospitals, like UF Health, which are required to provide indigent care.
She also said it’s important to limit your expenses and prepare emergency savings to lessen the blow in the event of a medical emergency.
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