By: TAHP | Friday, January 10, 2025

What’s new: As of January 4, 2025, more than 3.8 million Texans have enrolled in health insurance through Healthcare.gov, surpassing last year’s record of 3.5 million and more than tripling the 1.1 million enrolled in 2020. With the January 15 deadline approaching, enrollment momentum continues.

• This growth highlights expanding access to coverage for self-employed individuals, gig workers, and small business employees.

Why it matters: Texas has the highest uninsured rate in the nation, with small business employees making up a significant portion of the uninsured. Rising costs and limited options mean many small businesses and self-employed Texans still struggle to find affordable coverage that meets their needs.

Driving the Increase in Coverage:

• Affordability: Enhanced subsidies mean 4 out of 5 Texans can find plans for $10 or less per month after financial assistance.
• Expanded Competition: Texas leads the nation with 15 insurers offering marketplace plans, giving 97% of enrollees access to three or more insurers.

Individual Coverage May Be a Solution for Small Employers:

• Limited Coverage: Only 31% of small businesses with fewer than 50 employees offer health insurance, compared to 99% of large businesses with over 200 employees.
• Rising Costs: Premium increases have steadily reduced small business coverage rates over the past two decades.
• ICHRAs Offer Solutions: Individual Coverage Health Reimbursement Arrangements (ICHRAs) allow small businesses to bypass expensive group plans by contributing tax-free funds for employees to purchase their own individual market coverage. This flexible option empowers employees to choose plans that fit their needs.

Don’t wait to Visit Healthcare.gov to explore your options: January 15 is the deadline to sign up for coverage for 2025.

Go deeper: Dive deeper into the success of Texas’ individual market with TAHP’s 101 presentation and handy one pager.

Additionally: Enhanced tax credits have lowered health care costs for Texans, making Marketplace coverage more affordable. Unless Congress takes action to extend these enhanced tax credits, they will expire at the end of the year, and millions of Texans will lose access to affordable coverage. Learn more about the benefits of enhanced tax credits here.