This article is over 5 years old

News

Insurance Expert Predicts Increasing Costs For Houstonians With End Of ACA Subsidies

Ken Janda, president and CEO of the non-profit Community Health Choice, estimates rates could increase between 10 and 15 per cent.

Share

Listen

To embed this piece of audio in your site, please use this code:

<iframe src="https://embed.hpm.io/242553/242551" style="height: 115px; width: 100%;"></iframe>
X

Some health insurance experts say President Donald Trump's decision to end the subsidies of the Affordable Care Act (ACA) can have a significant impact in Houston.

The subsidies known as cost-sharing, which allow insurers to offer low deductibles and premiums, will be eliminated.

The White House says President Trump is ending the subsidies because they were not formally appropriated by Congress.

Ken Janda, president and CEO of the non-profit Community Health Choice, estimates there are about 200,000 people in the Houston area who benefit from the subsidies.

Janda tells Houston Matters that insurance companies that provide care through the ACA, commonly referred to as Obamacare, will have to raise rates between 10 and 15 percent, and the middle class will carry most of the burden.

"It’s those people that have very little premium subsidy, or no premium subsidy, that will actually be the most impacted. The actual low income people who get the cost sharing reductions will still get them, it’s just that somebody else rather than the federal government is going to have to pay for it," says Janda.

Janda also thinks the number of people in the Houston region without insurance will go up and that could cause a domino effect because hospitals and doctors will have to provide more health care that is not paid for, so they might have to increase their prices.

Today in Houston Newsletter Signup
We're in the process of transitioning services for our Today in Houston newsletter. If you'd like to sign up now, fill out the form below and we will add you as soon as we finish the transition. **Please note** If you are already signed up for the newsletter, you do not need to sign up again. Your subscription will be migrated over.