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Obamacare Enrollment Declines in 49 States
KFF said the loss of federal aid made coverage more expensive, and New Mexico was the only state to offset the subsidy expiration with state funds.
Enrollment in Obamacare plans dropped in 49 states after Congress allowed federal subsidies to expire at year-end, according to a KFF analysis; New Mexico was the sole exception.
Designed as a temporary pandemic-era measure, the American Rescue Plan Act provided the subsidies in 2021; the Inflation Reduction Act extended them through 2025, eliminating premiums for low-income households.
KFF data shows enrollment fell 32% in Ohio and Oklahoma, while the Trump administration attributed declines to eliminating "improper, phantom and fraudulent enrollment," claiming nearly 3 million people left.
Obamacare insurers are proposing a median premium increase of 14% for 2027, a second consecutive double-digit hike; KFF senior researcher Justin Lo said some insurers are "reassessing their positions and their commitment" to participating.
Many enrollees drop coverage when unable to make premium payments; Mississippi saw the lowest retention rate past January, at around 61%, signaling future marketplace challenges as insurer participation remains uncertain.