States step in with emergency health insurance aid as federal subsidies expire

At least a dozen states are scrambling to limit health insurance premium increases after Congress failed to renew enhanced Obamacare subsidies, leaving millions of Americans facing higher health care costs.

States including California, Colorado, Maryland and New Mexico have approved or are considering temporary measures to help some residents get coverage, but some officials across the country have said the cost of replacing federal subsidies for millions of enrollees is beyond the reach of state budgets. According to Politico.

“We can cover the cost for a while, but at some point we will need Congress to act,” New Mexico House of Representatives Speaker Javier Martínez told the press. New Mexico is the only state so far to completely replace expiring subsidies.

Obamacare, formally known as the Affordable Care Act, was former President Barack Obama’s signature legislation in 2010 that expanded health insurance to millions of Americans. Critics argue that it forces people to buy insurance, raises costs for some consumers and significantly expands the federal government’s role in health care.

SPEAKER JOHNSON, GOP LEAVES HEALTH CARE ACT VICTORY BEHIND AFTER OBAMACARE REBELLION

The looming end of subsidies caused negotiations to be suspended during the longest government shutdown in the fall; Republicans and Democrats have tried and failed to pass rival plans to expand or replace enhanced tax credits.

The end of subsidies is expected to take millions of Americans out of the individual insurance market, increasing pressure on state Medicaid programs and hospitals already facing financial strain. States’ responses varied widely, reflecting political divisions, fiscal constraints, and differing views on the Affordable Care Act.

Anticipating the end of subsidies, California is spending nearly $200 million to support nearly 300,000 low-income residents, according to Politico, but officials warn hundreds of thousands more could lose coverage.

COLLINS AND MORENO ANNOUNCE OBAMACARE PLAN WHILE REPUBLICANS SEEK SOLUTIONS TO EXPIRED SUBSCRIPTIONS

Obamacare, formally known as the Affordable Care Act, was former President Barack Obama’s signature legislation in 2010 that expanded health insurance to millions of Americans. (Lea Suzuki/The San Francisco Chronicle via Getty Images; Stefani Reynolds/Bloomberg via Getty Images)

Some states are using regulatory maneuvers rather than direct financing to expand remaining subsidies. Other states, including Georgia and Washington, say budget shortfalls or political opposition are keeping them from taking action.

According to Politico, most states took no action, including Republican-led states that oppose the Affordable Care Act and some Democrat-led states that support it.

Several lawmakers in Maine and other battleground states worry that their efforts will deter Congress from finding a federal solution.

Sens. Susan Collins, R-Maine, and Bernie Moreno, R-Ohio, announced plans to extend expiring Obamacare subsidies by two years, which would include ending income caps and zero-cost premiums. (Anna Moneymaker/Getty Images; Andrew Harnik/Getty Images)

CLICK TO DOWNLOAD FOX NEWS APPLICATION

Earlier this month, Sens. Susan Collins, R-Maine, and Bernie Moreno, R-Ohio, held bipartisan conversations to lay out a framework for an Obamacare fix that could meet the wishes of both sides of the aisle, but it has yet to be formally written into a bill that has passed both chambers.

Any fix would likely involve a short-term extension of subsidies, along with Republican demands for guardrails such as income caps or cost controls.

Fox News’ Alex Miller contributed to this report.