'No Question' More People Will End Up With Fake Insurance If ACA Subsidies Expire: Expert

Time on Thursday published reporting about "how fake health insurance is luring people in," and along with sharing stories of Americans tricked into paying for plans that aren't compliant with the Affordable Care Act, the article features an expert's warning that more could be fooled if Congress lets ACA subsidies expire.

The ongoing federal government shutdown stems from congressional Democrats' efforts to reverse recent GOP cuts to Medicaid and extend the ACA tax credits, which set to expire at the end of the year. Open enrollment for 2026 plans sold on ACA marketplaces starts Saturday, and Americans who buy insurance through these platforms now face the looming end of subsidies and substantial monthly premium hikes.

"Confusion about navigating insurance writ large and the Affordable Care Act marketplace in particular has led many people to end up with plans that they think are health insurance which in fact are not health insurance," Time reported. "They mistakenly click away from healthcare.gov, the website where people are supposed to sign up for ACA-compliant plans, and end up on a site with a misleading name."

ACA plans are required to cover 10 essential benefits, the outlet detailed, but consumers who leave the official website may instead sign up for short-term plans that don't span the full year, fixed indemnity plans that pay a small amount for certain services, or "healthcare sharing ministries, in which people pitch in for other peoples' medical costs, but which sometimes do not cover preexisting conditions."

Claire Heyison, senior policy analyst for health insurance and marketplace policy at the Center on Budget and Policy Priorities, told Time that "there's no question that more people will end up with these kinds of plans if the premium tax credits are not extended."

According to the outlet:

These non-insurance products "have increasingly been marketed in ways that make them look similar to health insurance," Heyison says. To stir further confusion, some even deploy common insurance terms like PPO (preferred provider organization) or co-pay in their terms and conditions. But people will pay a price for using them, Heyison says, because they can charge higher premiums than ACA-compliant plans, deny coverage based on preexisting conditions, impose annual or lifetime limits on coverage, and exclude benefits like prescription drug coverage or maternity care.

Often, the websites where people end up buying non-ACA compliant insurance have the names and logos of insurers on them. Sometimes, they are lead-generation sites... that ask for a person's name and phone number and then share that information with brokers who get a commission for signing up people for plans, whether they are health insurance or not.

To avoid paying for misleading plans, Heyison advised spending a few days researching before buying anything, steering clear of companies that offer a gift for signing up, and asking for documents detailing coverage to review before payment.

On the heels of Time's reporting and the eve of open enrollment, Data for Progress and Groundwork Collaborative published polling that makes clear Americans across the political spectrum are worried about skyrocketing health insurance premiums.

The pollsters found that 75% of voters are "somewhat" or "very" concerned about the spikes, including 83% of Democrats, 78% of Independents, and 66% of Republicans. While the overall figure was the same as last week, the share who said they were very concerned rose from 45% to 47%.

As the second-longest shutdown ever drags on, 57% of respondents said they don't believe that President Donald Trump and Republican majorities in both chambers of Congress are focused on lowering healthcare costs for people like them and their families. More broadly, 52% also did not agree that Trump and GOP lawmakers "are fighting on behalf of" people like them.

A plurality of voters (42%) said that Trump and congressional Republicans deserve most of the blame for rising premiums, while 27% blamed both parties equally, and just a quarter put most of the responsibility on elected Democrats.

"While President Trump focuses on the moodboard for his gilded ballroom and House Republicans refuse to show up for work in Washington, a ticking time bomb is strapped to working families’ pocketbooks," said Elizabeth Pancotti, Groundwork Collaborative's managing director of policy and advocacy, in a Friday statement.

Pointing to the Trump administration's legally dubious decision not to keep funding the Supplemental Nutrition Assistance Program during the shutdown, she added that "healthcare premiums are set to double and food assistance benefits are on the brink of collapse in a matter of hours, and voters know exactly who's to blame."