Millions Could Lose ACA Coverage Without Tax Credit Extension

Millions of Americans may lose their health insurance coverage if Congress does not extend premium tax credits associated with the Affordable Care Act (ACA). These tax credits were initially expanded in the American Rescue Plan Act of March 2021 and further extended through the Inflation Reduction Act of August 2022 until the end of 2025. Recent analysis from the Urban Institute and the Robert Wood Johnson Foundation warns that the expiration of these subsidies could exacerbate crises in healthcare access and affordability.

The report details that over 21 million people are currently enrolled in Marketplace plans, with a significant decrease in the uninsured population reported since the introduction of the tax credits. Should these credits expire, it is projected that there will be dramatic declines in coverage and a rise in the number of uninsured individuals, with communities experiencing varying levels of impact based on race, income, and age demographics.

Experts highlight the need for policymakers to prepare for the potentially devastating consequences of this expiration, emphasizing that it could disproportionately affect vulnerable populations. With a large percentage of Marketplace enrollees relying on these tax credits, there is an urgent call to action to ensure continued healthcare access for millions.