texas – Healthcare costs are expected to rise for millions of Americans, and data shows Texans’ costs will be significantly higher than the national average.
Enhanced premium tax credits that keep plans affordable are set to expire at the end of this year, and unless Congress extends them, premiums will skyrocket next year.
Texas health care costs could rise
BERLIN, GERMANY – SEPTEMBER 5: A doctor talks about high blood pressure in a patient on September 5, 2012 in Berlin, Germany. Doctors in the country are demanding higher payments from health insurance companies (Krankenkasse).
What we know:
Texas is one of 10 states that did not expand Medicaid in 2012. That means millions of people in the state rely on purchasing private plans through the federal marketplace.
And as people prepare to renew their policies in 2026, analysts warn of real “sticker shock”. Open enrollment for health insurance begins Saturday, November 4, and with enhanced federal tax credits expiring soon, costs are expected to skyrocket next year.
Nationally, average premiums are expected to rise about 75%, according to the Texas Association of Health Plans. Here in Texas it is expected to exceed 115%. This means the average monthly cost for a family is expected to increase from $1,600 to more than $3,400.
Approximately 3.3 million Texans are self-insured. Close to a million people gained coverage thanks to expanded tax credits. And experts worry that without financial support, many people will lose coverage altogether.
‘The die has already been cast’
What they say:
“If the tax credit goes away, Texans who could otherwise go out into the market and get affordable coverage will find that their coverage is much more expensive, and in many cases about twice as much,” said Blake Hutson of the Texas Association of Health Plans.
“There is still debate over whether to extend or renew the enhanced premium tax credit, but the die has already been cast. This uncertainty has forced insurers to take a look at what their premiums are going to be,” said Stephen Love, President and CEO of the DFW Hospital Council.
Hutson said the number of people buying insurance in Texas has increased since the tax credit was implemented.
“Before the tax credit, about 1 million Texans had coverage in that marketplace. Now, there are about 4 million, simply because the tax credit makes the monthly cost for a family much more achievable,” Hutson said.
Texas already leads the nation in the number of uninsured residents, at about 17%. Officials have warned that number will rise above 20% because Texans will not be able to afford it.
“Walking down the street, every fifth person you see doesn’t have health insurance,” Love said.
“That’s going to lead to overcrowded emergency rooms. You’re getting primary care in the wrong setting. Hospitals probably aren’t going to collect or reimburse you for that,” Love continued.
What you can do:
For now, Texans should shop carefully during open enrollment to see if any remaining tax credits can still help them sustain their plans.
“You might be able to find a plan that’s right for you. There are still tax deductions out there, so just put your family information in there and see.”
Next steps:
Open registration runs until January 15th.
Unless Congress steps in to renew the tax credit, these higher prices won’t appear until plan year 2026.
source: Information in this report was provided by the Texas Association of Health Plans and the DFW Hospital Council.
