Murkowski warns Alaska faces ‘extremes of extremes’ as some health premiums could nearly triple

WASHINGTON (KTUU) – Sen. Lisa Murkowski, R-Alaska, warned Wednesday that Alaska faces some of the “most extremes of the extremes” when it comes to skyrocketing healthcare costs. Nearly 28,000 Alaskans could see their insurance premiums spike by as much as 295% if Congress fails to extend Affordable Care Act subsidies by the end of the month.

“My home state of Alaska appears to suffer some of the most extremes of the extremes when we’re talking about these high costs,” Murkowski said at the Health, Education, Labor and Pensions Committee Wednesday. “People are expecting us to come up with a solution.”

The warning comes as Alaska ranks among the hardest-hit states in the nation for premium increases, according to the Kaiser Family Foundation, after the crisis was highlighted during the 43-day government shutdown—the longest in U.S. history—that ended in November when eight Senate Democrats broke ranks to reopen the government.

As part of that deal, Republicans promised a vote on extending the enhanced premium tax credits by the middle of December. Alaska’s senators say they’re still working on extensions, but they only have until December 31.

Senate Democrats will be forcing a vote next week on a plan to extend enhanced premium tax credits, or the subsidies in question, for three years, NBC’s Sahil Kapur reports.

“Republicans have one week to decide where they stand: Vote for this bill and bring health care costs down, or block this bill and send premiums skyrocketing,” Sen. Chuck Schumer, D-New York, said on the Senate floor Thursday. “That’s what’s at stake when we vote next week. It’s going to be one of the most important votes we take.”

Across the aisle, though, its chances to survive a filibuster seem unlikely.

“I haven’t seen yet what the Dems are proposing. I don’t think we’re close to a 60-vote threshold yet,” Senate Majority Leader John Thune, R-South Dakota, told NBC News on Tuesday.

In a statement to Alaska’s News Source, Murkowski, too, said she was dubious of its chances in the chamber.

“We have two problems in front of us that we need to resolve: the immediate spike in premiums Alaskans will face if we do not allow for some limited extension before the end of this year, and the need to address the ever-escalating cost of receiving basic health care,” she said.

“These are policy considerations that will take us more than a week to resolve. I’ve been working to bring my colleagues to the table to develop both short- and long-term solutions before Alaskans feel the impact of these premium increases in the new year.”

Sen. Dan Sullivan, R-Alaska, said at an Anchorage Chamber of Commerce forum in November he supports “tapering down” the subsidies over time rather than an abrupt end.

“Senator Sullivan is working relentlessly with his Senate colleagues on both sides of the aisle to extend ACA subsidies with necessary reforms before the end of the year,” spokesperson Amanda Coyne told Alaska’s News Source Thursday. “Senator Sullivan recognizes that because of the high cost of health care delivery in Alaska, thousands of small business owners, fishermen, entrepreneurs, and others across the state rely on those subsidies.”

Coyne did not say whether Sullivan supports the Democrats’ three-year extension plan.

All the while, President Donald Trump has backed a plan to send funding to individuals instead of insurance companies.

“THE ONLY HEALTHCARE I WILL SUPPORT OR APPROVE IS SENDING THE MONEY DIRECTLY BACK TO THE PEOPLE, WITH NOTHING GOING TO THE BIG, FAT, RICH INSURANCE COMPANIES, WHO HAVE MADE $TRILLIONS, AND RIPPED OFF AMERICA LONG ENOUGH,” Trump said in a social media post last week. “Congress, do not waste your time and energy on anything else.”

That plan, touted by Sen. Bill Cassidy, R-Louisiana, proposes individuals receive credits, “directly to patients and empower them to manage their own health care decisions,” according to a press release from his office.

Alaska’s News Source contacted the entire delegation for comment Thursday. A spokesperson for Begich did not respond to multiple requests over several days.

Alaska impact

Healthcare premiums for about 28,000 Alaskans, roughly 4% of the state, could skyrocket if the subsidies expire, according to data from the Kaiser Family Foundation and Alaska’s Division of Insurance.

House Minority Leader Hakeem Jeffries, D-New York, told CNN Wednesday Alaska would be one of ten states hardest hit by the funding cut.

“We’re talking about tens of millions of people, including in many red states across the country,” Jeffries said. “In fact, the states that will be most impacted if the Affordable Care Act tax credits expire, are Republican run states. We’re talking about West Virginia, Wyoming, Alaska…”

Alaska’s News Source reached out to Jeffries’s office for specifics on his claim, though the request was made after his office hours in D.C.

Jeffries statements align with data from a Nov. 24 study from the Kaiser Family Foundation, showing that in many cases, Alaska, on average, has some of the highest percentage increases to how much premiums will cost if the subsidies expire.

The study shows 60-year-old Alaskans earning just above 401% of the federal poverty line ($78,396 annually) could see their premiums increase by 295%. The average premium without these subsidies would become $2,192 monthly, consuming 34% of their yearly income.

In this age and income group, Alaska is the fourth highest increase, the first being Wyoming at 421%, West Virginia at 413% and Connecticut at 316%.

“I think we’re going to need to have a short-term extension‚” Murkowski said at the Wednesday committee meeting. “But I think we can put reasonable caps on it … But we’ve got to be looking longer term to how do we ultimately reduce these costs of care.”

The enhanced premium tax credits, which provide more generous subsidies than the original Affordable Care Act and extend eligibility, began during the pandemic and were extended in 2022. They are set to expire at the end of 2025 if Congress does not extend them again.

The subsidies were at the core of the recent 43-day government shutdown, with Senate Democrats forcing the closure to try and extend the credits. Alaska’s entire congressional delegation has publicly said they support extending the subsidies.

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