Health Insurance Premiums Are Spiking in NC

Costs are out of control. And despite the lofty campaign promises, Trump and his Republican allies have made things much, much worse. 

Name an essential– groceries, housing, health care– the price tags are all more painful than they used to be. Over the past year, beef is up 11%, coffee is up 14%, and eggs are up 16%. Grocery prices have actually increased every single month this year– except for April, when they dropped by a whopping 0.1%.  

Trump promised to “immediately bring prices down, starting on Day One.” This was more than an empty promise, it was a shameless lie. On Day One, Trump began announcing severe, cost-raising tariffs on America’s closest trade partners– a devastating blow to consumers and small businesses. He even rolled back provisions to help lower prescription drug prices and Medicare costs. And he hasn’t looked back since.  

Tariffs hurt– the Yale Budget Lab estimates that Trump’s tariffs will eventually cost the average household about $2,400 this year– but the Republican budget bill that Trump signed into law this summer is even worse. 

In North Carolina, the Republican budget could raise electricity costs by an average of $700 per household, per year. It kicks tons of families off of SNAP, a food assistance program that puts food on the table for millions of children. And it kicks millions of people off of their health insurance, spiking medical debt. 

But another provision in the Republican budget that you might not have heard of– the ending of ACA tax credits– could spike everyone’s health insurance premiums, regardless of whether you receive your health insurance from Medicaid, Medicare, the ACA marketplace, or your employer. 

Health insurance costs were already rising due to tariffs, which are increasing the cost of prescription drugs, medical equipment, and supplies. Tariffs—and the uncertainty around them—are driving rate increases about 3% higher.

Then, Republicans used their budget bill to end tax credits for folks who get their insurance through the ACA marketplace. This provision alone is expected to raise premiums for the ACA marketplace by over 75%. This year, more than 15% of North Carolinians, or about 1 million people, purchased their insurance on the marketplace. 

Let that sink in. 1 million North Carolinians are about to see their health insurance costs increase by 75% due to the Republican budget. 

But wait, there’s more! Since ACA insurance will be so damn expensive, many people will choose to just go uninsured. With less people purchasing insurance, premiums are projected to increase by another 4%. 

So health insurance is now 75% more expensive for a million North Carolinians, and 7% more expensive for everyone else across the board. What does that mean for employers who provide insurance to their employees as part of a benefits package? 

They have to cut costs– which roughly 59% of employers are intending to do by offering their employees cheaper insurance plans. And a lower quality insurance plan often requires that employees pay more in the form of higher deductibles and co-pays.

Higher premiums, higher deductibles, and higher co-pays amounts to more expensive health care for all North Carolinians– 29% more expensive according to some analysts. 

It’s no secret why Congressional Republicans did this. The total cost of cutting our health care– $1 trillion– is the exact cost of the tax breaks that Trump delivered for the wealthiest 1%. 

At the end of the day, Republicans passed a budget that will kick millions of people off their health insurance, and raise the cost of care for millions more. No one was celebrating the American health care system before, but MAGA Republicans may have just delivered it a fatal blow.