North Carolina Governor Josh Stein is urging Congressional leaders to extend tax credits meant to offset premium costs for health care plans purchased under the Affordable Care Act. The tax credits, which were passed as part of President Biden’s Inflation Reduction Act, are set to expire at year’s end. If they are not extended, nearly 900,000 North Carolinians who purchase coverage through the Health Insurance Marketplace will see a dramatic increase in out-of-pocket costs next year, Stein warns.
If the credits expire, the average North Carolinian enrollee is expected to pay $672 more annually for the same health insurance plan they currently have, with even greater increases expected for rural residents. Many residents won’t be able to afford this increase, putting 157,000 North Carolinians at risk of losing coverage, Stein cautions.
“People won’t simply stop getting sick. Their healthcare will just become more costly. Changes in the insurance market will have ripple effects, resulting in higher health insurance costs for everyone,” Stein wrote in a letter to Congressional leaders.
The looming expiration of the ACA tax credits comes at the same time North Carolina is bracing for the devastating impacts of the Trump administration’s “One Big Beautiful Bill” budget, which slashes Medicaid funding.
The cuts to Medicaid could trigger the end of Medicaid expansion in the state, putting hundreds of thousands of additional North Carolinians at risk of losing their health care coverage.
“Loss of insurance would put family finances and health in peril; increase costs for everyone, including those who get private or commercial insurance from their employers; drive up medical debt; and leave hospitals and providers on the hook for more uncompensated care,” Stein warned Congressional leaders.
