Kentuckians face steep healthcare premium hikes as ACA tax credits set to expire

FRANKFORT, Ky. (ABC36 NEWS NOW) – Thousands of Kentuckians could soon face major increases in their monthly health insurance premiums as federal tax credits under the Affordable Care Act are set to expire at the end of this year.

The kynect marketplace covers small business owners, older residents not yet eligible for Medicare, and rural Kentuckians who make too much to qualify for Medicaid but don’t receive health insurance through work. Gov. Andy Beshear says without an extension of the federal tax credits, nearly 100,000 Kentuckians could see premiums jump by as much as 37 percent when open enrollment begins next week.

“American families should never have to choose between affording groceries, paying the rent and being able to afford healthcare coverage,” Beshear said.

Beshear, along with other state governors, has sent a letter to President Donald Trump urging him to extend the tax credits. The governor says losing them would drive up Kentucky’s uninsured rate and strain already struggling hospitals.

For small business owners like Ann Pipes, the change could be devastating. She says her current monthly premium is $350 with the credit — but without it, it would rise to about $1,300. “That current rate is higher than our mortgage,” she said.

Pipes says she’s already working a second job to manage rising costs and fears she may have to go without insurance for the first time in her adult life if nothing changes.

Democratic Congressman Morgan McGarvey says he’s willing to work with lawmakers from both parties to restore the credits, calling the issue urgent for Kentucky families and the state’s healthcare system.

Beshear emphasized that no state could absorb the impact of losing the federal assistance. “We’re going to see our uninsured rate go up,” he said. “That means our hospitals are going to take another hit… with more emergency work that has to be performed without compensation.”