Health insurance costs to climb for 500K Michiganders unless Republicans take action

Over 500,000 Michiganders could face skyrocketing health insurance costs next year as federal tax tax credits are set to expire. But will Republican lawmakers step in to prevent it?

MICHIGAN—Federal tax credits that make health care coverage more affordable for millions of Americans are set to expire at the end of the year. And unless Republicans in Congress vote to extend those subsidies, healthcare costs could rise for hundreds of thousands of Michiganders.

Here’s the deal: 

The Affordable Care Act (ACA) was signed into law by former President Barack Obama in 2010, expanding access to Medicaid for tens of millions of Americans and creating a health insurance marketplace where Michiganders can purchase plans—often with subsidies to reduce costs.

President Joe Biden expanded the program, signing into law billions of dollars in additional subsidies to broaden eligibility and lower premiums. As a result, millions of Americans now pay just a few dollars a month for coverage. 

This year, a record high of at least 24 million people—including about 516,000 Michiganders—have enrolled in ACA coverage ahead of the Jan. 15 sign-up deadline.

However, incoming President-elect Donald Trump has long criticized “Obamacare,” unsuccessfully attempting to dismantle it during his first term. Trump has since promised to overhaul the program—without providing a clear plan—during his second term.

And with tax credits that lower the cost of coverage expiring at the end of the year, the program now faces an uncertain future under a Republican-controlled White House and Congress.

What’s Trump’s plan?

Since the ACA’s passage 15 years ago, Trump has repeatedly vowed to repeal it. 

During the 2016 campaign, he pledged to “repeal and replace” the ACA. However, his administration ultimately failed to deliver a concrete replacement, and long-sought efforts to repeal parts of the law were blocked by every Democrat and a handful of Republicans in 2017.

In 2023, Trump renewed his attacks on the ACA, criticizing Republicans who previously opposed its repeal and claiming he was “seriously looking at alternatives.”  Last year, Trump shared a vague promise on social media to improve the ACA if he was re-elected to office.

“We’re going to make the ACA much better than it is right now,” Trump contended.

During a debate with Vice President Kamala Harris, Trump also revealed to moderators that he still only had “concepts of a plan” to replace the Affordable Care Act ahead of his second term. 

And this year, Republican lawmakers reportedly plan to redirect billions of dollars in ACA funding to other priorities, such as tax cuts for the wealthy and enhanced border security.

According to a POLITICO report, the proposals include “reimagining” the ACA and recovering $46 billion in savings by allowing cost-saving tax subsidies to expire at the end of the year. 

So what?

Repealing the ACA would jeopardize healthcare for 516,000 Michiganders who are currently covered through the ACA marketplace or Medicaid expansion. It would also eliminate protections preventing insurers from denying coverage to patients with pre-existing conditions.

In Michigan, federal estimates indicate that 1.4 million people could lose their insurance and about 1.8 million people with pre-existing health conditions could lose critical protections.

“Republicans are plainly putting the wealth of the 1% ahead of the needs of hard-working Michiganders and Americans alike,” said Michigan Democratic Party Chair Lavora Barnes. “Unfortunately, we’ve come to expect no less from Trump’s lackeys in Congress.”

What’s next?

Hospitals and insurers are expected to pressure Congress to maintain the federal tax credits. A new coalition of top insurers, healthcare systems, and medical associations has launched the “Keep Americans Covered” campaign to lobby lawmakers to resist Republican-led changes.

Still, it’s an uphill battle. Many Republicans previously voted against the ACA and later sought its repeal. However, some lawmakers may hesitate to strip constituents of healthcare coverage. 

“The American people have made it overwhelmingly clear they support the ACA, and Democrats are ready to fight back as Trump and MAGA Republicans once again try to rip away access to care,” said Democratic National Committee Rapid Response Director Alex Floyd. 

The Associated Press contributed to this report. 

READ MORE: Trump leaves 1.4M Michiganders hanging on ‘concepts of a plan’

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