Millions Could Lose Health Insurance If Premium Tax Credit Doesn’t Get Renewed
The ending of tax cuts might be a hot topic, but another change looming in 2025 could impact millions of Americans’ healthcare access: the enhanced premium tax credit (PTC).
This credit, expanded under President Biden’s administration, helps people afford health insurance through the Affordable Care Act (ACA) Marketplace.
**What would happen if it expires?**
Analysts warn that without renewal, insurance premiums will skyrocket or become unaffordable for almost every ACA Marketplace enrollee. An estimated 4 million people could lose healthcare entirely and 21 million would face drastically higher costs. The average shopper saved $700 in 2024 thanks to these enhancements.
**The Deadline:**
Congress has a limited window to act. While the PTC expires at the end of 2025, the window to prevent premium increases for 2026 coverage is actually this spring.
**Medicaid is an Option, but Limited**
Limited to states that expanded Medicaid, it can only help cover those below a certain income level. People in states that haven’t expanded Medicaid, or fall outside of these income limits, could be stuck with unaffordable costs or become uninsured.
**What can people do?**
Congress is still divided on which way this bill will go. Several Senators and Congresswomen have pushed for a permanent PTC. Vice President Harris supports this too, but there is no similar statement from former President Trump.
One alternative for those who can’t afford the marketplace is “health care sharing,” a system where members contribute to a pool to share medical expenses. It operates differently from traditional insurance, unlike health insurance, member’s pay their own medical bills, but get reimbursed by the shared fund.
Authorities aren’t sure how the US political landscape and upcoming elections will impact this crucial issue.
