Rising Health Insurance Premiums Concern Long Island Residents
Residents of Long Island looking to purchase health insurance through the Affordable Care Act may experience significant increases in monthly premiums, which could reach thousands of dollars for some. This comes at a time when there is uncertainty about extending federal financial aid.
The open enrollment period for the New York State Department of Health’s ACA Marketplace starts on November 1 for new enrollees and November 16 for those renewing their plans.
Currently, around 28,000 individuals in Long Island are receiving federal tax credits to help reduce their insurance costs. Although a law implemented in 2021 improved these subsidies, they are set to expire on December 31. This assistance is vital for a range of ACA participants, which include small business owners, their employees, and independent contractors.
Vanessa Baird Streeter, president and CEO of the Long Island Health and Welfare Council, expressed concern, noting that without the subsidies many people might find themselves making difficult choices—like deciding between paying for health insurance or covering basic needs such as food or housing.
She mentioned that “people are very concerned” about the potential loss of insurance, especially for middle-income families struggling to afford coverage in a region where premiums are notoriously high.
Meanwhile, Democratic lawmakers have withheld support for any government spending legislation unless it includes provisions to make the enhanced subsidies permanent. This impasse has led to government offices being closed since October 1. Some Republicans are against extending the aid, although others suggest resolving the issue separately from the shutdown.
Cynthia Cox, the ACA program director at KFF, expressed concern that even if subsidies are extended, high premiums might deter people from exploring their options. “Once someone decides that something is too expensive, it’s tough to bring them back,” she pointed out.
Individuals signing up for new ACA coverage will find out their premiums without subsidies starting Saturday, while current enrollees can estimate potential reductions in their subsidies, knowing exact costs won’t be available until renewal begins on November 16.
The state estimates that those on subsidized plans in Long Island could see an average increase in premiums of about 32%.
For example, a family of four in Suffolk earning $130,000 annually could receive around $1,514 per month in federal tax credits if the subsidies are maintained. In this case, their estimated premium for a mid-tier “Silver Plan” would be approximately $921 monthly. However, without the enhanced subsidies, they could face an estimated $2,435 per month.
Conversely, an individual in Nassau making $45,000 annually would still qualify for the subsidy but would see their Silver Plan price increase from $206 to $359 monthly. Currently paying nothing for a bronze plan, they would owe $143 if the extended subsidy isn’t granted, but those plans come with higher deductibles and copays.
U.S. Rep. Laura Guillen (D-Rockville Center) reported hearing from many concerned Nassau County residents about potential spikes in their premiums. She criticized Republicans for not extending these essential credits, stating that it would worsen Long Island’s living cost crisis. “I’ll continue to advocate for bipartisan solutions to preserve these tax credits,” she said.
Rep. Nick Larota (R-Amityville) supports a one-year subsidy extension but emphasizes the need to end the government shutdown.
“Americans need real solutions to rising healthcare costs,” he remarked, mentioning that claims have been denied at a rate of one in three since the introduction of Obamacare, while premiums have surged 60% faster than inflation despite record profits for insurance companies.
Michael Davoli, a senior director at the American Cancer Society’s Cancer Action Network, warned that subsidy reductions could be dire for numerous individuals. He stated, “These increases will make it impossible for many New Yorkers to secure quality, affordable insurance. The loss of coverage could be life-threatening for cancer patients currently in treatment or facing a diagnosis.”
