Healthcare Costs Set to Rise in South Carolina as ACA Subsidies Expire
COLUMBIA, S.C. — Health insurance premiums are expected to increase significantly for thousands of South Carolinians following the expiration of enhanced Affordable Care Act (ACA) subsidies on December 31, 2025. This development comes after Congress failed to extend the financial assistance that had helped many afford their health coverage during recent years.
Nationwide Impact and Local Implications
Across the country, approximately 5 million people enrolled through the ACA marketplace are projected to face higher monthly premiums starting this year. In South Carolina alone, insurance brokers estimate that between 75,000 and 100,000 residents will need to decide whether to pay full price for their coverage or forgo insurance altogether, a choice that could have serious financial and health consequences.
Joel Lourie, a Columbia-based insurance broker, explained, “Premiums typically increase about 15% each year.” Though final enrollment numbers for January are not yet available, early projections suggest a substantial financial impact on many households.
Rising Premiums Example
One illustrative case shared by insurance brokers involves a 55-year-old man who last year received a monthly subsidy of $375 toward a $714 health insurance policy. With the subsidy now expired, his premium has increased by approximately $100 per month, requiring him to pay the full amount out of pocket.
Limited Alternatives: Catastrophic Health Plans
Some consumers have inquired about catastrophic health plans as a lower-cost alternative. While these plans generally feature lower monthly premiums, they also come with very high deductibles and limited coverage, making them impractical for people who require regular medical care. As a result, many policyholders find these plans insufficient for their healthcare needs.
Voices of Concern from ACA Enrollees
Many individuals who depend on ACA plans are hoping for congressional action to reinstate subsidies. A House discharge petition — a procedural move that can force a vote on the House floor — may temporarily restore financial assistance while lawmakers negotiate a longer-term resolution.
Risa Strauss, an ACA plan enrollee, shared her concerns: “Losing the subsidies would push my monthly premium up by about $400 — more than my mortgage payment. I really don’t have any other options. If something happened to me and I didn’t have healthcare, I could go bankrupt. I asked about getting catastrophic, but it would be an enormous premium, so it wouldn’t be much of a difference. I’m using just about every cent of my paycheck.”
Potential Consequences and Expert Recommendations
Insurance brokers warn that without congressional intervention, many people may drop their health coverage entirely. Rising uninsured rates can increase strain on hospitals, escalate uncompensated care costs, and ultimately drive healthcare expenses higher for everyone.
South Carolinians are urged to take action before the enrollment deadline this Thursday, January 15. Experts recommend:
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Comparing plans on the ACA Marketplace and renewing or changing coverage by January 15. – Contacting local insurance brokers or certified enrollment navigators for free assistance.
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Checking Medicaid eligibility, as some individuals may qualify based on income.
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Carefully considering catastrophic plans by understanding their high deductibles and limited benefits.
Staying informed and proactive during this period is crucial for maintaining affordable healthcare coverage amidst these changes.
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