Affordable Care Act subsidies at risk as government shutdown drags on

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Members of Congress push for negotiations over Affordable Care Act subsidies

As the government shutdown extends for another week, there is growing concern from people who get their insurance through the Affordable Care Act or in our state, Covered California. Some government subsidies are set to expire. And if Congress doesn't act to extend them, rates will go up significantly for thousands of people. Three Democratic members of Congress held a news conference today trying to shed light on just how dire this will be.

As the government shutdown stretches into another week, concern is rising among people who get health insurance through the Affordable Care Act — including Covered California enrollees — as some federal subsidies are set to expire.

If Congress does not act to extend them, premiums could rise significantly for thousands of people. Three Democratic members of Congress held a news conference in San Jose on Tuesday to highlight the potential impact.

Small-business owners brace for higher premiums

What they're saying:

Small-business owners like Josephine Aranda say they are worried about steep increases if subsidies lapse.

"It’s going to be a big increase. So that’s very significant financially. So we are thinking of what do we do now?" Aranda said.

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Lawmakers warn of steep costs

Local perspective:

At the news conference, lawmakers outlined the stakes for families. In Rep. Zoe Lofgren’s district, a 60-year-old couple earning less than $83,000 a year could see "a more than $26,000 increase" in premiums if subsidies expire, Lofgren said. "We can’t have that."

Stalled talks on Capitol Hill

Dig deeper:

Democrats said there have been no meaningful negotiations on extending the health care subsidies, even as the shutdown continues.

"I’ve had conversations with more than a dozen Republicans in the last few days. I understand there are some of them that want to get this tax credit extended. So let’s figure out how we can get there," said Rep. Sam Liccardo.

"This is going to come to a head where they’re going to have to answer to their constituents," said Rep. Jimmy Panetta. "They should be answering to it right now by coming to the table right now and protecting health care and lowering costs for all Americans."

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Some Republicans open to a deal

Rep. Kevin Kiley, R-Calif., who represents the 3rd District, said he supports seeking common ground on health care to help end the shutdown.

"There’s going to need to be a deal on that issue. That’s my belief," Kiley said. "If we can start to come to the terms of that deal now, or at least start talking about it, that can itself provide a pathway out of the shutdown. I don’t know why we wouldn’t at least explore that possibility."

Community clinics worry higher premiums could deter patients from seeking coverage.

"We’re encouraging patients to still continue to come in and get a quote from the experts," said Nancy Rodriguez, an enrollment supervisor with Gardner Health Services.

What’s next for consumers?

What's next:

If nothing changes, Aranda says she may need to find a job that offers employer-sponsored insurance.

"We don’t want a big change if we don’t have to. And hopefully it’s going to work out," she said.

Open enrollment for the Affordable Care Act and Covered California runs Nov. 1 through Jan. 31.

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