Our View: Making the ACA the UCA benefits no one

The clock is ticking away while Republicans and Democrats in Congress play an appalling game of chicken.

As of this editorial's publication, the U.S. government is in its 18th day of a shutdown, all because our elected officials think they can effectively run the country by ignoring one another.

At the forefront of this absurd stalemate are enhanced subsidies, or tax credits, for those insured on the Health Insurance Marketplace, created under the Affordable Care Act, or ACA.

Enacted by Congress as a part of COVID-19 financial recovery efforts, the enhanced subsidies lowered premiums enough to allow many South Carolinians to become insured. These subsidies are set to expire at the end of this year.

Staunch conservatives are concerned about the high cost to the federal government if enhanced subsidies aren't retracted. And, indeed, analysts say the federal deficit could increase by $350 billion by 2035 if enhanced tax credits are left in place. Those calling for an end to the subsidies say they were only meant to be temporary.

While initially making the enhanced subsidies temporary seemed like a good idea, the economy hasn't recovered to pre-COVID levels.

If subsidies are allowed to sunset on Dec. 31, more than 100,000 South Carolinians could lose their health insurance, and more than 545,000 will likely see premiums jumping as high as 114% of their current amounts. Those increases would certainly break the bank and make the ACA the UCA — Unaffordable Care Act.

Due to the ever-increasing cost of health insurance, a lot of small businesses have stopped providing employer-sponsored health plans for their employees.

And since the ACA's enhanced subsidies went into effect, many local, small businesses, the Index-Journal included, followed suit, knowing our employees could find affordable health insurance in the Health Insurance Marketplace. Such moves have been a win-win for small businesses and small business employees.

However, if Congress can't come together and work out a deal to keep premiums affordable for the more than 24 million Americans on marketplace plans, small businesses could lose their most valuable assets — their employees — who would have to seek employment at large companies, simply because of the need for affordable health insurance.

Interestingly, the states with the most people enrolled in marketplace plans are from red states — those that voted for President Trump last year.

Hopefully, the president and his allies in Congress will realize that biting the hands that feed them, by completely wiping out the enhanced ACA subsidies, will not bode well in the midterms or beyond.

Hopefully, both sides of the aisle will very soon stop playing chicken with the American taxpayers' time and money.