Florida health insurance premiums set to spike as federal tax credits near expiration

Millions of Floridians could soon face skyrocketing health insurance costs. State regulators have approved steep increases to marketplace plans, and at the same time, federal tax credits that help offset premiums are set to expire.

Florida would be hit harder than any other state if Congress fails to extend the program. The state leads the nation in the number of people buying private health insurance through the marketplace. The Kaiser Family Foundation estimates 1.4 million Floridians could lose coverage, nearly doubling the uninsured rate.

Scott Darius, Executive Director of Florida Voices for Health, said the impact would go far beyond individuals.

“You have folks who are small business owners, self-employed people, who all rely on that source of coverage to be active participants in the economy,” Darius said.

Health care leaders are urging lawmakers to act quickly.

“This is such a valuable program, and unfortunately, I’m not sure there is enough true understanding about the magnitude and the significance of it,” The Florida Hospital Association president Mary Mayhew said.

Mayhew warned the ripple effect could overwhelm hospitals.

“It is far more expensive when individuals have to rely on the emergency department. We’ve got to set aside the polarizing politics and recognize what an incredible success the federal marketplace is.”

Gottesman said she struggles to understand why Congress would let the credits lapse.

“I want to weigh the pros and cons — but I can’t find the argument against it. When you look at the bigger picture of government spending, it may not be that bad,” she said.