States step in with emergency health insurance aid as federal subsidies expire

At least a dozen states are scrambling to limit health insurance premium hikes after Congress failed to renew enhanced Obamacare subsidies, leaving millions of Americans facing higher health care costs.

States including California, Colorado, Maryland and New Mexico have approved or are considering temporary measures to help some residents afford coverage, but some officials across the country said the cost of replacing federal subsidies for millions of enrollees is beyond the reach of state budgets, according to Politico.

“We can carry the cost for a little bit, but at some point, we will need Congress to act,” New Mexico House Speaker Javier Martínez told the outlet. New Mexico is so far the only state to fully replace the expired subsidies.

Obamacare, officially known as the Affordable Care Act, was former President Barack Obama’s signature piece of legislation which expanded healthcare coverage to millions of Americans in 2010. Critics argue it forced people to buy insurance, raised costs for some consumers and significantly expanded the federal government’s role in health care.

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The looming expiration of the subsidies hung over negotiations during the longest-ever government shutdown in the fall, as Republicans and Democrats tried — and failed — to pass competing plans to extend or replace the enhanced tax credits.

The lapse of the subsidies is expected to push millions of Americans out of the individual insurance market, increasing pressure on state Medicaid programs and hospitals already facing financial strain. State responses have varied widely, reflecting political divisions, fiscal constraints and differing views on the Affordable Care Act.

According to Politico, California, which anticipated the subsidies would expire, is spending nearly $200 million to support roughly 300,000 lower-income residents, but officials warn that hundreds of thousands more could still lose coverage.

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Some states are using regulatory maneuvers rather than direct funding to stretch remaining subsidies. Other states, including Georgia and Washington, say budget shortfalls or political opposition prevent them from acting.

Most states have taken no action at all, including both Republican-led states that oppose the Affordable Care Act and some Democrat-led states that support it, according to Politico.

A few lawmakers in Maine and other battlegrounds worry their efforts could disincentivize Congress from coming up with a federal solution.

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Earlier this month, Sens. Susan Collins, R-Maine, and Bernie Moreno, R-Ohio, held bipartisan confabs to hash out a framework for an Obamacare fix that could meet the desires of both sides of the aisle, but it has not been formally written into a bill that passed either chamber yet.

Any fix would likely involve a short-term extension of subsidies paired with Republican demands for guardrails, such as income limits or cost controls.

Fox News’ Alex Miller contributed to this report.