In a pair of letters, 195 members of Congress recently urged leadership to extend the enhanced premium tax credits that will expire in 2025. The enhanced premium tax credits — which were introduced in 2021 — lowered health insurance premium costs for millions of people purchasing coverage on the marketplace.
One of the letters was signed by 41 Senators and was addressed to Majority Leader Chuck Schumer (D-New York) and Minority Leader Mitch McConnell (R-Kentucky). The other was signed by 154 U.S. representatives and was sent to Schumer, McConnell, House Speaker Mike Johnson (R-Louisiana) and House Leader Hakeem Jeffries (D-New York).
The letters stated that because of the enhanced premium tax credits, monthly premiums for marketplace plans have been reduced by an average of $59 per person. In addition, a record 21.4 million people enrolled in Marketplace plans for the 2024 Open Enrollment Period. They also had a substantial impact on health equity. There was a 95% increase in Marketplace enrollment among Black Americans and a 100% increase among Hispanic Americans between 2020 and 2023, the members of Congress argued.
“The enactment of the enhanced [premium tax credits] by Congress was a foundational step towards keeping health care premiums low and putting money back in families’ pockets – and our work is just getting started,” the U.S. representatives stated. “By including provisions to extend the enhanced PTCs in the soonest possible legislative opportunity and creating a pathway for making them permanent, we can finish the job for the American people and keep quality health care within reach for our constituents. American families cannot afford to go back to paying upwards of 20% – or more – of their household income on health care premiums. ”
If the enhanced premium tax credits expire, more than 20 million people will experience an increase in their health insurance costs, and about 3 million people could lose their coverage, the letters argued.
“The enhanced [premium tax credits] have protected millions of Americans from higher health care costs, reduced the number of Americans without coverage, provided robust choices for consumers and provided stability for health care providers, particularly in rural areas,” the senators said. “It is clear that the enhanced PTCs have proven to be an overwhelming success, and, as millions of Americans face an increase in their insurance costs, it is time to make the investment permanent. We strongly urge the Senate to act to extend this financial support as soon as possible.”
While research shows that every state and people of all ages and income will see higher premiums if the enhanced premium tax credits expire, certain groups will especially be impacted, the letters argued. This includes those in smaller and rural states, older enrollees, and those with incomes above 400% of the federal poverty level.
“This, in turn, would strain hospitals, physicians, nurses, pharmacies and others whose care would continue without compensation, compounding pre-existing problems, and could be disastrous for rural and underserved communities,” the senators said.
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