Alabamians brace for higher premiums as Congress has no clear plan to extend health insurance subsidies
Story by Alex Angle at the Alabama Daily News
WASHINGTON — Now that open enrollment for the Affordable Care Act marketplace has opened, insurance navigator Mark Linn’s phone is ringing about eight times a day with Alabamians calling for help with enrolling in health coverage.
The first week of open enrollment is usually one of the busiest times for Enroll Alabama, a federally funded program that assists individuals with purchasing plans through Healthcare.gov. But this year, those who want coverage are facing a new challenge.
“I would say that one of the differences this year is that, obviously, a lot of people are worried about what they’re hearing on the news in regards to the additional tax subsidies, which are set to expire on Dec. 31,” Linn told Alabama Daily News.
Affordable Care Act premiums are set to rise by up to 27% next year in Alabama or an average of 20%, as a result of rising health care costs and expiring subsidies. Around 477,000 Alabamians receive insurance through the marketplace.
After Congress passed a measure to end the shutdown this week that does not include an extension of the enhanced tax credits, it’s unclear how the issue will be addressed in the final two months of the year.
That’s leaving Debbie Smith with Alabama Arise’s Cover Alabama campaign feeling distressed and fearful of how Alabamians will be able to continue to afford insurance in 2026.
Roughly 130,000 Alabamians could be priced out of health coverage next year if the subsidies lapse, according to Alabama Arise.
“It’s been kind of overwhelming, honestly,” she told Alabama Daily News.
If that many people drop health insurance coverage, it would also have an impact on Alabama’s state budget. Blue Cross and Blue Shield of Alabama estimates that lost premium tax revenue for the General Fund will total about $17 million in 2026.