LEXINGTON, Ky. (LEX 18) — Thursday marks the beginning of the new year and that also means the start of a new way we look at, and pay for, health insurance.
It’s been a hot button issue for years. The Affordable Care Act – initially dubbed “Obamacare” by its opponents – has helped tens of millions of Americans obtain health insurance since it was enacted in 2010. But that’s about to change.
The “Big Beautiful Bill," President Donald Trump’s vision cleared the U.S. House and Senate on the 4th of July, brought a number of changes.
Among them was a reduction in government ACA subsidies and expiration in enhanced tax credits that, when combined, would leave some 16 million more Americans uninsured starting in 2026.
“We could socially say that's the wrong way to go because it's the lower end of the earnings spectrum that will be hurt the worst and there may be something to that”, says local insurance agent David Thornton.
Thorton has spent more than 40 years in the industry and has watched the Affordable Care Act evolve over the years and concludes that it hasn’t been a perfect system.
“But those weren't the only people that were taking advantage of those subsidies," he said. "You had people living in wonderful big businesses and million dollar houses that were taking no salary and that were just living on dividends that still qualified for a huge subsidy.”
Allison Luckett is another veteran insurance agent who says her clients are already feeling the pinch.
“We had a couple of carriers pull out of the market, but I would say the average person is gonna see just from a flatline premium, not any adjustments to the subsidies, probably I'd say average (increase of) 35 to 40 percent," she said.
Luckett said that some people have chosen to go uninsured because they can no longer afford premiums.
“We've had people that have looked at moving into the short-term medical market, where they could get coverage that may not be as expensive, definitely not as robust as the coverage that you would see in the ACA market," she said.
Luckett said she’s advising her clients to make sure to keep their information up to date in order to stay eligible for any subsidies that may still be available.
“I tell my clients if the plan that you're in now is now unaffordable, I would rather see you in some coverage than no coverage," she said. "So let's see if we can't find something that maybe isn't as robust as the plan that you have now, but that it is gonna keep you from catastrophic loss in the event of a major medical event.
Luckett adds that you should reach out to your representatives in Frankfort and in Washington and let them know how you are being affected, as well as seeking a healthier lifestyle where possible.
