The federal government has shut down after lawmakers failed to pass a new budget. Congress has been here before. But this time, the fight is over something that reaches right into family checkbooks — the cost of health insurance.
The Sticking Point
Democrats are refusing to support a temporary budget unless it includes extended subsidies for people who buy coverage under the Affordable Care Act. Those subsidies, increased during the pandemic, help families pay their monthly premiums. Without them, many Georgians would see their insurance costs double or even triple when new rates take effect. Families that use the health care marketplace, will face sticker shock when they sign up for plans next month.
Republicans argue that Washington cannot afford to keep paying for the higher subsidies. They want them scaled back or allowed to expire, calling the program a costly expansion of government. The standoff has left the government without funding and thousands of workers without paychecks.
Who Uses The Affordable Care Act?
While many Americans who get healthcare through their employers, they may have the perception that those on the Affordable Care Act are unemployed, which is not true. Many Americans work at small companies or work part time and do not get health insurance through their employer. The checkout clerk at the grocery store, your uber driver, and your waitress may not have health insurance through their employers. Also, small business owners and self-employed people rely on the Affordable Care Act because they don’t qualify for group insurance plans.
What the Shutdown Means
The shutdown itself does not immediately raise premiums or cancel coverage. Medicare, Medicaid and Social Security benefits continue. Employer insurance continues as well. Federal employees keep their health benefits even if their paychecks are delayed.
But the longer Congress delays, the more the subsidies remain in limbo. The open enrollment period begins in just a few weeks. If the subsidies are not renewed before then, families shopping for coverage could see shocking increases in what they owe each month.
Other Ripples
Beyond insurance, the shutdown has other effects. Roughly 40 percent of federal health agency employees have been told to stay home. That means slower approvals for medical research grants, stalled clinical trials, and delays in services that touch hospitals and universities here in Georgia.
Food assistance programs could also face disruptions if the shutdown stretches on. Nutrition benefits for low-income women and children are funded only month to month. Agencies say they can manage for a short while, but not indefinitely.
Politics vs. Pocketbooks
Democrats argue that keeping the subsidies in place is the only way to prevent a spike in the number of uninsured Americans. Republicans counter that Washington must start cutting costs somewhere, and the subsidies are a place to begin.
While the parties argue, families are left in the middle. Most Americans don’t care about the partisan scoreboard. They care about whether they can keep their doctor, refill prescriptions and cover emergencies without going bankrupt.
What Happens Next
The government will remain shut down until Congress agrees on a funding bill. For that to happen, lawmakers will have to cave or compromise.
