Health insurance premiums may spike as open enrollment begins amid government shutdown

CHARLOTTE, N.C. (QUEEN CITY NEWS) — Open enrollment for health insurance begins Nov. 1, but many Americans may face sticker shock this year — especially if the government shutdown continues.

A month into the shutdown, uncertainty still looms over whether enhanced subsidies will be extended.

“There’s a lot of issues on the table, but the big sticking point is these enhanced subsidies,” said Kyle Romanat, an insurance broker with Health Market Genius, LLC

in Ballantyne.

Romanat said many insurance companies raised premiums this year due to the uncertainty surrounding financial assistance.

“They’ll blame medical inflation, the cost of things going up, but when people go back to the way it was before the enhanced subsidies, their premiums are substantially higher than what they paid before,” he said.

He added that insurers are concerned people may drop their coverage altogether and are trying to plan for that possibility.

Michael Thompson, an associate professor of health management and policy at UNC Charlotte, said consumers should prepare for the worst-case scenario.

“I think you have to plan for the worst case that those enhanced benefits are going to expire,” Thompson said.

He warned that many people may be forced to make difficult choices.

“Consumers may be forced with choosing between coverage that now costs twice as much per month to choosing a plan that doesn’t cover as much, but they have more liability for out-of-pocket costs should they become ill or forgoing coverage at all, and dealing with the consequences of something catastrophic,” he said.

Thompson said families will need to weigh financial risks, especially as the cost of housing and food also continues to rise.

“It’s a very difficult position to be in. And so I think it’s mainly a matter of trying to figure out what kind of risk you can tolerate and can afford,” he said.

If enhanced benefits are approved, they will be reflected in your plan — even if you enroll before a decision is made. The deadline to enroll for coverage starting Jan. 1 is Dec. 15.