With critical subsidies that help nearly 20 million Americans afford health insurance set to expire, U.S. Senator Kirsten Gillibrand held a video press conference to urge Congress to pass the Health Care Affordability Act by the end of this year. This legislation would permanently extend the enhanced premium tax credits (PTC) offered in individual marketplaces under the Affordable Care Act (ACA), helping keep health care costs lowered for all Americans. Without an extension, these enhanced subsidies will expire at the end of 2025, causing an estimated 4 million Americans to lose their insurance over the next several years.
“No one should have to forgo treatment because they can’t afford health insurance,” said Senator Gillibrand. “Allowing these tax credits to expire would create a financial burden that many New Yorkers cannot afford, jeopardizing public health and forcing hard-working families to choose between potentially life-saving care and putting food on the table. I am determined to get this bill passed by the end of this year so we can keep health care costs lowered for all Americans.”
Premium tax credits (PTC) were established as part of the ACA, which became law in 2010. PTCs are refundable credits that help low- and middle-income individuals and families cover the premiums for their health insurance purchased through the Health Insurance Marketplace.
In 2021, the American Rescue Plan Act (ARPA) temporarily expanded eligibility for PTCs and lowered premiums for those who were already eligible. In 2022, the Inflation Reduction Act extended these enhanced credits for three years. Since ARPA’s passage, ACA enrollment has nearly doubled, helping more low- and middle-income households receive coverage and care. While the amount of savings varies by person, these enhanced PTCs have reduced premium costs by 44 percent on average.
If Congress does not act to again extend the enhanced PTCs, the provision will expire at the end of 2025, and nearly 20 million Americans will see a sudden increase in their health insurance costs. This includes tens of thousands of New Yorkers, who will, on average, face a yearly increase of $1,440 in the amount that they pay for their premiums.