Enhanced premium tax credits for Americans insured by the Affordable Care Act are set to expire in 2025.
U.S. Sen. Kirsten Gillibrand (D-NY) is pushing Senate leadership to extend the COVID-era credits and has introduced legislation to make them permanent.
The tax breaks were created to lower premium costs for low and middle-income people. In 2021, the American Rescue Plan Act expanded them, and in 2022, the Inflation Reduction Act further supported them.
But if the credits aren't extended by spring, Gillibrand said 20 million Americans could see their health care costs rise.
“A 45-year-old New Yorker making $62,000 a year could see their yearly premiums grow by over $4,000,” Gillibrand said. “A 60-year-old couple making $82,000 a year could see their yearly premium jump by over $11,000. And finally, a family of four making $126,000 a year could face a yearly premium increase of over $16,000.”
According to Gillibrand, more than 20 million Americans, including 200,000 New Yorkers, have benefited from the enhanced premium credit.
“If these tax credits do expire, we can expect the number of New Yorkers who are uninsured to spike,” Gillibrand said.
President-elect Donald Trump (R) attempted to repeal the Affordable Care Act during his first term. Gillibrand said if the ACA changes under Trump, she will push for a Medicare buy-in.
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