FRANKFORT, Ky. (LEX 18) — Nearly 100,000 Kentuckians could see their health insurance premiums increase by up to 37% unless Congress extends tax credits set to expire at the end of the year, Governor Andy Beshear warned.
The governor said this jump is 10 times bigger than increases seen in recent years, affecting those with insurance plans through Kynect, Kentucky's Affordable Care Act exchange.
Beshear and Congressman Morgan McGarvey held a press conference on Tuesday pushing President Donald Trump and Congress to extend the ACA tax credits currently set to expire on December 31st. The issue is part of the ongoing dispute between Republicans and Democrats that has led to the federal government shutdown.
Without these tax credits, Kentucky families will be forced to pay thousands more every month for health insurance, Beshear said. For example, he says a 60-year-old couple making $85,000 would need to pay nearly $24,000 more annually for health insurance.
"I don't want to sugarcoat it. It's going to cause a lot of pain to our people - both individually in their healthcare options as well as healthcare as a massive employer and part of our economy," Beshear said.
The tax credits directly impact those who get their insurance through the Affordable Care Act marketplace, but McGarvey said the cost will trickle down and impact those who buy private health insurance through their employer too. He explained that private insurance companies are going to raise their rates to offset the cost of unpaid medical services.
"Guess what? People are still going to get sick. People are still going to have emergencies. People are still going to be going to hospitals and getting care. Even if they don't have health insurance, they're still going to be going to the emergency room - maybe not being able to pay for that care as they are now," McGarvey said. "So private insurance, they're seeing that. They're anticipating it. They know it's going to happen. And they are going ahead an increasing the cost of everyone's health insurance to offset that."
Families who rely on health insurance through the Affordable Care Act marketplace are already stressed about the situation.
"We currently do not have an extra $900 a month in our budget. That current rate in higher than our mortgage," said Ann Pipes during the press conference.
"It's hard," she added. :It's going to be the first time in my adult life, if this does not get solved, that I'll be without insurance."
