State officials are striking a different tone this year in their advice to Connecticut residents looking to enroll in health plans through Access Health CT, the state’s health insurance exchange.
“If you could, wait a little bit longer,” Access Health CT CEO James Michel told residents during a press conference on Tuesday. “Instead of enrolling on November 1, give it more time, because I know there’s conversations going on right now to try to get the subsidies resolved.”
Open enrollment for plans taking effect at the start of next year is slated to begin Nov. 1 and go through Dec. 15. Residents have until Jan. 15 to enroll in plans beginning in February.
The subsidies Michel referred to are known as “enhanced premium tax credits.” They were initially passed in 2021, as part of the American Rescue Plan, in an effort to bring down the cost of purchasing health insurance on the exchanges during the COVID era.
Now they’re set to expire at the end of 2025. And they’ve become the crux of the current stalemate in Washington, where the federal shutdown has dragged on for more than 20 days, as Democrats demand Republicans extend the subsidies if they want the necessary votes to fund the government. On Tuesday, state officials encouraged residents to wait before enrolling in a plan to allow time for the situation in Washington to potentially resolve itself.
This week, in advance of open enrollment beginning Nov. 1, residents who purchase health insurance through Access Health CT will receive letters informing them how much more they can expect to pay for coverage if the premiums do in fact expire.
Gov. Ned Lamont on Tuesday acknowledged that it’s an “incredibly scary” time for people receiving those notices.
“This is just really dumb policy coming out of Washington, coming out of this White House — the idea that you’re going to jack up the cost of health care,” Lamont said. “It’s incredibly erratic, and it’s just putting an extra load on middle class families who are just trying to get by.”
State Senate Minority Leader Stephen Harding, R-Brookfield, said he and members of his caucus agree that the subsidies play a critical role in helping Americans afford the high cost of insurance. But he thinks federal Democrats should agree to fund the government while negotiations on how to extend them continues.
“Step one: Reopen the government so that people are provided the services they need, and we don’t continue to have a shutdown on this. And then step two, negotiate with Republicans, which they said they’re more than willing to do, from what I understand, and come to an agreement on continuing the subsidies. It’s pretty simple,” Harding said.
Around 90% of Connecticut residents who purchase a plan on the exchange receive financial support to help cover the cost. If the enhanced premium tax credits expire, there will still be some financial support available to people, but Connecticut residents with exchange plans could expect to pay $1,700 more on average every year for health insurance, according to Access Health CT.
Over 135,000 people will lose at least some financial support. A fifth of those people, or roughly 27,000, will no longer be eligible for any financial assistance.
Lamont said state officials are hard at work coming up with a plan in case the subsidies aren’t extended, but he admitted that the hole created if they do expire would be too large for the state to backfill.
“I can’t make up all the shortfall of Washington falling down on their obligations,” Lamont said.
State officials would have to spend more than $295 million annually to pick up the costs of the enhanced premium tax credits if Congress fails to extend them, a spokesperson with Access Health CT said.
Last month, Lamont joined governors from 17 other states in calling on congressional leaders to extend the subsidies.
Access Health CT CEO Michel reminded residents that the organization’s call centers remain open and available to answer questions, despite the government shutdown. He also stressed that, even though the enhanced premium tax credits could expire, some financial help will still be available to most people who currently receive it.
“So we encourage you to please still come back,” Michel said.