Rhode Islanders enrolled in HealthSourceRI (HSRI), the state’s health insurance marketplace also known as “Obamacare,” currently benefit from a federal assistance program that lowers their monthly premiums through a tax credit.
These “enhanced premium tax credits” are due to expire at the end of 2025, and when that happens people could see significant premium increases.
On average, the new rates will represent an 85% increase, but some low-income enrollees could see their rates jump nearly 400%.
State Sen. Pam Lauria told activists at the Statehouse Tuesday she’s worried about threats of budget cuts from Washington but is especially worried about this because a big chunk of the subsidy is due to expire.
“Trust me, I’m worried about a lot of things,” she said. “But this has a sunset, and it’s due to sunset at the end of this year. So it’s critical.”
Lauria is co-sponsoring a bill based on recommendations from a 2025 HSRI report that she says would solve the problem at no cost to the state’s general fund.
The Rhode Island Individual Market Affordability Act (H7694) would create a state program to replace the lost federal funding and keep health insurance affordable.
“It’s about 40 million dollars and it’s no general revenue impact,” said Shamus Durac, co-chair of the Protect Our Healthcare Coalition.
The money would come from an assessment of 1% on other forms of insurance issued in the state, and would not require new taxes to pay for it.
More than one in seven Rhode Islanders have had health insurance through HSRI at some point since 2013. More than 90% of Rhode Islanders enrolled get some financial assistance with their monthly premiums.
This story was reported by the Public’s Radio.
