Health care premiums for Coloradans on the state exchange expected to double at the end of the year

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Health care premiums for Coloradans on the state exchange expected to double at the end of the year
Health care premiums for Coloradans on the state exchange expected to double at the end of the year
Health care premiums for Coloradans on the state exchange expected to double at the end of the year
Republicans' sweeping measure to cut taxes and reduce spending is expected to hit the Senate floor next week.
In addition to making big changes to Medicaid, the bill also allows tax credits for those who get health insurance on the state exchange to expire.
Connect for Health Colorado says Coloradans on the exchange could see premiums increase by $3,000 a year if that happens. Approximately 80 percent of people who get insurance on the state exchange receive a federal subsidy. While credits were initially tied to income, the American Rescue Plan expanded them to everyone. In rural and mountain communities where insurance can run a family upwards of $30,000 a year, those credits have made insurance affordable for tens of thousands of Coloradans, including Ryan and Robin Wilson.
You'd be hard pressed to find a couple more civic-minded. Both work for nonprofits in the town of Fraser. He runs a community radio station. She manages an affordable housing community.
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Together, they make just enough to make ends meet, which made them eligible for tax credits under the Affordable Care Act -- until this year.
To qualify, they can't make more than 400% of the federal poverty level, which is $85,000 for a couple.
"We're at 402%, so we're just 2% over," said Robin.
She considered quitting a community college teaching job to lower their income until she heard the about another advanced premium tax credit created during COVID.
It caps premiums -- regardless of income -- at 8.5% of a household's earnings, which has made insurance affordable and led to record enrollment on the state health exchange. The average premium on Connect for Health is now $115 a month.
But CEO Kevin Patterson says when the expanded tax credit expires in December, premiums will more than double to $235-$279 a month.
"Across the board, we expect monthly premiums to increase by about 50%. For the folks that have financial assistance - which is about 80% of our 280,000 customers - we anticipate those premiums could increase by about 104%."
The Wilsons say instead of expanding their nonprofits, they will now likely have to shrink their income to qualify for the original credit.
"It shouldn't be a financial sacrifice to do good work in a good place," said Robin.
"We've been able to dedicate our lives to our local community more so than if the tax credits weren't there," said Ryan. "A vote against these premium subsidies is vote against the middle class. It's a vote against the poor."
Connect for Health says Coloradans receive about $328 million a year in tax credits.
The state Reinsurance program -- which has lowered premiums by about $2 billion over the last five years in Colorado -- would also take a hit if the tax credits expire.
The credits are based on the cost of premiums so, when premiums drop, the federal government pays less in tax credits. The feds have passed those savings on to states and Colorado has used the money to bolster the Reinsurance program and lower premiums further.
But those savings -- about $100 million a year in Colorado -- would be lost with the elimination of the tax credits.
Gov. Jared Polis is lobbying Colorado's congressional delegation to keep the credits rather than allowing them to expire in December.