Democratic lawmakers are pushing to make the Affordable Care Act’s (ACA's) enhanced premium tax credits permanent through the newly reintroduced Health Care Affordability Act.
If left to expire at the end of 2025, policy experts anticipate fewer Americans will have access to health insurance and costs will go up for millions of enrollees.
Sens. Jeanne Shaheen, D-New Hampshire, and Tammy Baldwin, D-Wisconsin, introduced the bill in the Senate, while Rep. Lauren Underwood, D-Illinois, put up an identical bill in the House. Shaheen was one of the initial backers of premium tax credits in the American Rescue Plan Act.
“It's time to extend these highly effective tax credits to keep costs from skyrocketing and ensure healthcare is within reach for every American, and I’m proud that our Health Care Affordability Act does just that,” said Shaheen in a statement.
These enhanced tax credits are made possible through the Inflation Reduction Act and available for people with an income between 100% and 400% of the federal poverty level, and increases eligibility for individuals above 400%. The bill shows the final premium percentage is 8.5% for individuals with a household income of 300% or more.
The bill was co-sponsored by Senate Majority Leader Chuck Schumer, D-New York, and members across the political spectrum on the left including Sen. Ron Wyden, D-Kansas, Sherrod Brown, D-Ohio, and Elizabeth Warren, D-Massachusetts.
It is also supported by a coalition specifically focused on extending the ACA subsidies permanently, which includes the AARP, AHIP, the Alliance for Community Health Plans, the Association for Community Affiliated Plans and the Blue Cross Blue Shield Association. Other endorsees of the bill include the United States of Care, the National Association for the Advancement of Colored People and the Federation of American Hospitals (FAH).
“Our hospitals deliver 24/7 care to every patient that comes through their doors—and these patients deserve access to high quality, affordable health coverage,” said FAH Executive Vice President of Public Affairs Charlene MacDonald in a statement shared with Fierce Healthcare.
Last week, Shaheen and Underwood wrote to Congress advocating for permanent premium tax credits, arguing it has given “stability” for rural healthcare providers.
They noted that coverage increased by at least 95% for Black and Latino Americans from 2020 to 2023 but that premiums would rise in every state for all demographics if the premiums expire. The Department of Health and Human Services anticipates premiums would increase by $406 on average for 8.9 million people.