With the government shutdown over and no deal right now for an extension of Affordable Care Act subsidies, rates are expected to double for Covered California enrollees.
For one north Sacramento nonprofit, they are bracing for a six-figure increase in costs.
“The reality is you have to tighten your belt,” Derrell Roberts said.
Roberts is bracing for a big hike in health care costs at his Roberts Family Development Center.
“We probably touch about 550 families every day,” he said.
The North Sacramento Community Center, which offers after-school, food, and mental health programs for the underserved north Sacramento community, is also mandated to offer its 50 employees health care plans.
Now those plans could cost the community center $100,000 more a year.
“It’s an increase of about 50% to as much as 75% on our health insurance,” Roberts said. “But that’s a sizable chunk for us as an organization.”
“We’ve introduced a bipartisan bill that is aimed at stopping a massive increase in health care costs,” Rep. Kevin Kiley said.Â
Kiley has introduced legislation with Democrat Congressmember Sam Licardo to extend Affordable Care Act subsidies by two more years.
The shutdown fight over that extension ended with no deal in place.
“What our measure is aimed at is providing some runway extending this relief for two years so that we can have some opportunity then to work on these larger issues,” Kiley said.
“And I think there are folks who on both sides of the aisle may not remember it is about the people,” Roberts said.
For Roberts, right now, his community center will spend more money on paying for his employees’ health care, forcing decisions on where he will spend less.
“Strategically, it’s hard, but it’s also something we’ve become accustomed to as a nonprofit,” Roberts said.
Roberts said while he is required to continue offering healthcare coverage, he believes a number of employees will opt out of their plans because they won’t be able to afford their increased portion.Â