Impact of Expiring Health Insurance Tax Credit in Colorado

DENVER — A significant tax credit that has assisted many Coloradans in obtaining health insurance is set to expire on Wednesday, as Congress chose not to renew it. This decision poses a challenge for numerous residents, who may now experience steep increases in their insurance premiums.

Health care advocates warn that, without these subsidies, the Affordable Care Act’s market premiums for Coloradans could see an average rise of 101%. This surge could compel families to make tough decisions about essential needs like food and housing.

Chelsea Baker Hauck, one of over 200,000 impacted Coloradans, described the struggle of managing her health insurance as “extremely tiring.” She mentioned that it’s felt like a full-time job for the last eight weeks.

Baker Hauck, whose long-term COVID-19 diagnosis has led to heart failure and other health complications, emphasizes the necessity of insurance. She shared that her monthly premium has escalated from $238 to $470, nearly doubling from the previous year.

“It’s a pain. Honestly, the only way to cover it is by dipping into our food budget,” she expressed. “At this stage in my life, I never imagined I’d be so concerned about where my meals come from.”

She added, “They’re playing with people’s lives, potentially endangering them. I can’t accept that.”

Manat Singh, Executive Director of the Colorado Consumer Health Initiative, stated that the end of this premium tax credit will significantly affect both Coloradans and individuals nationwide.

Singh estimates that around 75,000 residents in Colorado might lose their insurance due to rising prices. “Unfortunately, if we don’t extend these premium tax credits, many will have to make agonizing decisions between insurance and other basic needs,” she noted.

While the anticipated increase is lower than previously expected—initially projected at 170%—the current rise in premiums remains substantial, comparable to housing costs. Singh encouraged exploring alternative solutions like Colorado Option Plans and Discounted Care Programs to manage financial strain.

Despite the credit’s expiration, Singh mentioned that there is still potential support for an extension when Congress reconvenes.

“January provides our last opportunity to renew the premium tax credit enhancement effectively,” she remarked.

Baker Hauck expressed her hope that lawmakers will heed the concerns of those affected, especially as the holiday season approaches filled with anxiety and frustration. “Health insurance is essential, yet it’s treated as a luxury,” she said. “We can’t keep heading down this path. It’s simply unsustainable.”

With Congress returning on January 6 and the ACA Marketplace closing on January 15, time is limited for any policy adjustments.