If you’ve been following the news, you know that the government is in the middle of a shutdown. Our elected officials are locked in a stalemate, at the center of which is the extension of Affordable Care Act subsidies. 

What does the Affordable Care Act have to do with the shutdown?

Through the Affordable Care Act, self-employed individuals are able to purchase health insurance through their state marketplace; the subsidies are what help keep these healthcare plans actually affordable.

When Trump signed the “One Big, Beautiful Bill” into law over the summer, it dramatically altered the way these plans are funded — and did not extend these subsidies, which are sent to expire at the end of the year.

Although Republicans control both chambers of Congress, 60 senators need to vote yes on the government budget before it can be sent to the White House to be signed by the president. On October 1, the budget expired. Although the “One Big, Beautiful Bill has been signed into law, the government budget presents another opportunity to extend the ACA tax subsidies. 

Since October 1, all attempts at passing a government budget have failed because Democrats will not vote yes on the budget without the tax subsidies included, and Republicans claim they want the budget passed prior to discussion about the subsidies.

What happens next?

The government has been shut down now for over 20 days, with seemingly little movement from either party. Although experts say the economic fallout of the shutdown has been minimal so far, that is beginning to change. The federal government employs hundreds of thousands of people, who are either currently furloughed or working without pay. Soon, they will feel the effects of going without a paycheck, and Trump has signaled that he will pick and choose which federal workers eventually receive backpay.

And if the government does not reopen by November 1, at least 25 states will shut off SNAP benefits, severely limiting over 40 million Americans’ access to food and groceries.

What does this mean for freelancers?

Because health insurance in the U.S. is often tied to traditional employment, we know that millions of freelancers across the country rely on the marketplace to purchase health insurance. As it stands, lower-income enrollees are able to get healthcare without premiums, while higher earners are able to pay only 8.5% of income.

But without the subsidies, health insurance premiums will skyrocket, causing scores of freelancers to either go without health insurance entirely, or putting them in the position of being bankrupt by it.

Per a Kaiser Family Foundation report, annual out-of-pocket premiums are estimated to increase by 114% — an average of $1,016, and anyone earning over $63,000 will not be eligible for what tax credits are available.

What can you do about it?

Contact your elected officials — particularly if they are against extending the ACA subsidies — and let them know how important it is to you to see these subsidies extended.

Freelancers Union also offers health insurance plans tailor-made for freelancers. Check out our options on our website and speak with a representative from one of our partners to learn if one of them may be right for you.

We must continue to work together, to share our stories, and realize that we are not alone in facing these challenges.