LAWRENCE, Kansas — Meg Heriford darted around Ladybird Diner, a classic, American eatery in downtown Lawrence, seating people and delivering water and menus. The place was hopping late morning on a Friday.
Heriford owns the diner. It’s been a staple in Lawrence since it opened in 2014. Heriford said she spends almost every day working at the diner. It’s a physical job, so she said staying healthy is critical.
“Not being healthy would mean that my business would not survive,” she said. “So me staying healthy means my business can stay healthy.”
Heriford typically uses the Affordable Care Act marketplace to purchase health insurance. It’s a government-run website for people who don’t get insurance through their employers and others who are eligible to shop online for coverage options.
She said as a small business owner, tax subsidies offered through the marketplace help make health insurance a possibility for her.
But that may change. The tax subsidies that help Heriford and more than 200,000 Kansans pay for health insurance are about to expire.
What tax credits are expiring?
The Affordable Care Act was signed into law by President Barack Obama in 2010. It aimed to lower uninsured rates and out-of-pocket costs. A more detailed background of the ACA is available at this link on KFF’s website.
The enhanced tax credits that are being debated were introduced in 2021 during the COVID-19 pandemic. Whether or not to renew them was at the center of the recent government shutdown. Lawmakers did not make an agreement to renew the tax credits before the shutdown ended, but they could do so before open enrollment ends on December 15 for plans that begin January 1. For coverage that starts in February, the deadline is January 15.
Cynthia Cox is vice president and director of KFF’s ACA program. KFF is a nonprofit think-tank that focuses on health policy. She said on NPR’s All Things Considered that premiums will go up a lot if the credits expire.
“Some people may not see much of a premium increase. Other people could see astronomical premium increases,” Cox said. “But really, I think the reality is that on average, people's costs are going to double.
What do premiums look like without enhanced tax credits?
In Overland Park, Scott Robinson, who is self-employed, purchases insurance through the ACA marketplace. He said his premium will go from about $1,600 a month to $2,100.
Robinson said he can afford this, but he doesn’t feel like it’s worth it.
“Since using the marketplace, the costs have gone up and the care has gone down,” he said. “And when I say care, I mean what insurance companies are willing to cover.”
Robinson, a “compassionate conservative” who is Republican leaning, said the health system is broken. He said the tax credits should be extended for a year, but only to buy time for a more sustainable solution.
“I believe that everybody should get health care and I believe it should be affordable and neither one of those things are true currently,” Robinson said.
Robinson said he’d love to leave the marketplace for better quality insurance. He said he’s looking into other options that better align with his needs.
Back in Lawrence, health insurance costs for Heriford and her husband will quadruple, she said. She used to pay $219 per month, but when she logged on to enroll for next year, she saw her premium would be $890.
“We are kind of coming into our scan era,” Heriford said. “We're both in our early 50s and so preventative care feels really important for us right now.”
Heriford said she can’t afford the higher premium. She and her husband will have to go without health insurance unless Congress makes a plan to extend the credits.
“I run on hope. And I think a lot of people in my position are probably thinking the same thing, which is, maybe someone will hear us,” she said.
Bek Shackelford-Nwanganga reports on health care disparities and access for the Kansas News Service. You can email her at r.shackelford@kcur.org.
The Kansas News Service is a collaboration of KCUR, Kansas Public Radio, KMUW and High Plains Public Radio focused on health, the social determinants of health and their connection to public policy.
Kansas News Service stories and photos may be republished by news media at no cost with proper attribution and a link to ksnewsservice.org.
