ACA Premium Tax Credit Extension Uncertainty and Market Implications

The upcoming expiration of enhanced premium tax credits under the Affordable Care Act (ACA) poses significant uncertainty for the health insurance marketplace. Congress is currently deliberating on whether to extend these credits beyond the end of the year. Should the extension not occur, the Department of Health and Human Services (HHS) under the previous administration has an alternative option, but this alternative is expected to create challenges for the ACA marketplace.