Obamacare enrollments are close to hitting an all-time high of 24 million, nearly doubling the number during former President Trump's final term in office.
Nearly 24 million individuals have signed up for Affordable Care Act plans in 2025 so far, with more expected before January 15, as announced by the administration recently. This includes approximately 3.2 million new consumers and over 20.4 million returning ones. Health and Human Services Secretary Xavier Becerra stated that this figure doubles the number of Americans with health insurance coverage compared to the previous administration.
Four consecutive years have seen a record-breaking enrollment in ACA plans, thanks to the new administration. In contrast, during the final open enrollment period of President-elect Donald Trump's initial term, only 12 million individuals signed up for 2021 coverage despite his unsuccessful attempts to eliminate Obamacare.
The revived Obamacare enrollment, along with augmented coverage in Medicaid and Children's Health Insurance Program, resulted in record-low uninsured rates during Biden's tenure. In the second quarter of 2024, the uninsured rate stood at 7.6%. About 300 million Americans now have health insurance, with over 100 million subscribing through ACA, Medicaid, and Children's Health Insurance Programs.
Low-income individuals have primarily fueled the growth in Obamacare enrollments. They benefit from the enhanced subsidies, which have drastically reduced premiums to as little as $10 for many consumers. According to a 2024 report by KFF, the temporary subsidies also make health insurance policies more affordable for the middle class, contributing to their enrollment increase.
The improved subsidies have enabled four out of five consumers to find affordable plans. On average, enrollees save $800 on their premiums annually. Additionally, the Biden administration has increased outreach and enrollment assistance funding and simplified income verification processes, reducing the paperwork requirements for some individuals.
However, subsidies' continuation faces uncertainty. If they expire at the end of 2025, around 4 million individuals could lose their insurance, according to an Urban Institute analysis. Renewing the enhanced subsidies would cost $335 billion over ten years, as per the Congressional Budget Office.
The administration urged Republican lawmakers to prolong the subsidies, emphasizing the potential consequences if they don't. Premiums could escalate substantially for individuals, with a single parent potentially facing a $1,500 increase and a retired couple experiencing an $18,000 surge if the subsidies expire.
[1] Urban Institute. (2024). Premium Tax Credits and Individuals’ Health Insurance Affordability.[2] HHS.gov. (2024). Trends in Health Insurance Coverage in America.[3] CBO.gov. (2024). Impact of the Inflation Reduction Act on Premium Subsidies.[4] KFF.org. (2024). The Role of Subsidies in Obamacare Enrollment.[5] Congress.gov. (2024). Proposed Legislation to Extend Premium Subsidies.
The success in business for health insurance companies has significantly increased due to the high number of individuals enrolled in ACA plans. With the revival of Obamacare, over 100 million Americans now have health insurance, making it a profitable market for these businesses.
The Biden administration's efforts to extend the enhanced subsidies until 2025 are crucial for maintaining this high enrollment rate in ACA plans, ensuring that businesses in the health insurance sector continue to thrive.
