In Colusa, California, rising health insurance premiums have placed a significant financial burden on families, forcing them to reconsider their retirement plans and healthcare options. The situation is epitomized by the experience of Jean and Charles “Chaz” Franklin, whose lives took a dramatic turn following a serious medical diagnosis.
Jean Franklin, 63, had diligently saved over hundreds of thousands of dollars for retirement before becoming a stay-at-home mother. She and Chaz, a retired high school teacher, envisioned a comfortable retirement in their three-bedroom home, located approximately 60 miles northwest of Sacramento. However, in early 2023, Jean’s health began to decline. After experiencing slurred speech and losing mobility on one side of her body, she was hospitalized in May. The couple was later informed that their combined health care premiums would skyrocket from $540 per month to $3,899 starting January 1, 2024, due to the expiration of federal enhanced premium subsidies.
Financial Strain and a Life-Altering Diagnosis
The drastic increase in insurance costs forced the Franklins to cancel a planned cruise, shifting their focus from travel to financial survival. “Now, instead of thinking about where we can go in our retirement, we’re asking the question, ‘Are we still going to be able to stay where we are because of the health care costs?’” Chaz explained. In October, their situation worsened when Jean was diagnosed with amyotrophic lateral sclerosis (ALS), a progressive disease that will eventually impair her ability to speak and swallow.
Although the diagnosis allowed Jean to qualify for Medicare, which significantly reduced their monthly healthcare costs by roughly $1,600, the couple still faces a financial strain. Currently, their monthly healthcare expenses total approximately $2,300, which includes payments for Jean’s Medicare supplemental insurance. This amount surpasses their mortgage payment and consumes more than a quarter of their budget.
The Franklins are among the 22 million Americans experiencing heightened financial pressure following Congress’s decision to not extend enhanced federal subsidies for health insurance. These subsidies had previously helped boost enrollment in Affordable Care Act (ACA) plans to over 24 million individuals. According to the Congressional Budget Office, without continued tax credits, the number of uninsured Americans is projected to increase by 2.2 million in 2024.
Policy Implications and Future Outlook
Experts indicate that early retirees, middle-income earners, and residents in high-cost states will be most adversely affected by these changes. “They fell off what we call a subsidy cliff,” stated Stacey Pogue, a senior research fellow at the Center on Health Insurance Reforms at Georgetown University. Many individuals, like the Franklins, who previously did not qualify for financial assistance, are now losing support just as insurers are raising premiums in response to uncertainty in the market.
While some policymakers argue against the subsidies, claiming they disproportionately benefit insurance companies and contribute to fraud, patient advocates note the real consequences of these decisions. “The young people who are healthy are the first to say, I’m going to roll the dice,” remarked Rebecca Kirch, executive vice president of policy and programs at the National Patient Advocate Foundation. This forces many individuals to either forgo necessary coverage or delay critical care.
As the Franklins navigate their new reality, they have turned to their family for support. Their sons have assisted in procuring a motorized recliner for Jean and a handicap-accessible van. Chaz has even postponed dental work due to the high costs associated with healthcare. “I have a nest egg,” he remarked, reflecting on their financial situation, “But there’s a lot of people around here who don’t.” This year, they anticipate withdrawing an additional $36,000 from their retirement savings primarily to cover Chaz’s insurance premiums.
Despite the challenges, Chaz remains focused on making Jean comfortable. They shared a life filled with adventure, from hiking to amateur photography. Now, their daily routine includes caring for Jean’s needs, with their sons providing emotional support and humor. As Chaz prepares to turn 65 in December, he will qualify for Medicare himself, offering a glimmer of hope for their financial future. “After this year — knock on wood — we should be OK,” Jean stated, sharing a smile with her husband.
The situation faced by the Franklins highlights the broader implications of health insurance policy changes across the United States. As families grapple with rising premiums and reduced support, the conversation around healthcare affordability remains critical.
