PADUCAH — After Affordable Care Act subsidies — or premium tax credits — expired at the beginning of the year, West Kentucky Allied Services said hundreds locally have been affected, leaving some confused and concerned.
The ACA subsidies helped lower insurance costs for lower-income individuals who do not qualify for Medicare or have employer-sponsored insurance. In turn, the subsidies’ expiration has raised the monthly premiums for these plans.
“So you’re seeing people last year who may have paid $500 a month to $800 a month; now it has gone up to $2000,” WKAS kynect Healthcare Director Samantha Penrod said.
WKAS kynect Healthcare Director Samantha Penrod.
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Penrod said households that make over $100,000 per year are the group most affected and have had to make different decisions about how to pay for their healthcare.
“We’ve had to have a lot of really hard conversations with clients,” Penrod said. “Especially people who were just a little over that income limit mark, who now are having to adjust and find other ways to maybe cut back on different things in their life so that they can afford their health insurance.”
Penrod said some have opted to decrease their plan coverage to keep it affordable, while others look for cash options for their healthcare instead.
“We have gold plans, silver plans, and bronze plans,” Penrod explained. “So you’re seeing people on silver plans go down to bronze plans, which means that they are paying a lower monthly premium, but their deductible is higher, and their benefits might not be as good as if they were still on their silver plan.”
Hundreds have been affected locally by the ACA subsidies expiring, according to Penrod.
“Most of those people that I deal with that make over $100,000 are self-employed, small business owners, farmers, those types of people who don’t have an option for other health insurance,” Penrod said. “Most people you know can get health insurance through their employer. They don’t have that option, so this is kind of the only option that they have. So they are coming up with different strategies to find something else to do.”
Hundreds locally have been affected by the ACA subsidies expiring, according to West Kentucky Allied Services’ kynect Healthcare Director, Samantha Penrod.
MAX DAVIS | The Sun
In response to the subsidies’ expiration, WKAS has shown affected clients how to navigate the marketplace and pointed them toward affordable options. They have also referred clients to different organizations or agents who can help them understand the best options.
“There are different organizations within western Kentucky that help with prescription drugs and different medical costs,” Penrod said. “Also, referring them to insurance agents is very important, because insurance agents have a better insight into the insurance side, and they can break all of that down with them about what all the different costs are.”
Despite the challenges, Penrod said WKAS is seeing new people sign up for coverage. While some clients have dropped plans due to costs, just as many enrollees have come in.
“Even though we have lost so many Kentuckians from the marketplace, we have gained brand new Kentuckians, and it does show us that people are moving into the area,” Penrod pointed out. “There are people who need health insurance coverage, who are actively taking an interest in their health. That’s what I’m seeing a lot more of. I think it will have an effect, but I think the positive will outweigh the negative in the long run.”