Alliance of 28 organizations urges Congress to expand ACA to enhance tax credits
On Thursday, a coalition of 28 healthcare organizations sent a letter to congressional leaders calling on them to expand the Affordable Care Act and strengthen the premium tax credit, which will expire at the end of the year.
The letter was given to Senate Majority Leader John Thune; Senate Minority Leader Chuck Schumer; House spokesman Mike Johnson; and House Minority Leader Hakeem Jeffries. The letter was covered up by Americans and signed by medical institutions such as AHIP, Blue Cross Blue Shield Association, American Medical Association, Kaiser Permanente, USA.
As part of the American Rescue Plan Act, an enhanced premium tax credit was introduced in 2020, part of supporting people during the COVID-19-19 pandemic. They reduce monthly premiums for those who purchase coverage in the state and federal markets. In 2022, Congress extended the enhanced tax credit to 2025 through the inflation reduction law.
If Congress now allows enhanced tax credits to expire at the end of the year, “the expenses of health insurance will explode, and typical American families are forced to pay hundreds or thousands of dollars a month to maintain their coverage,” the organization wrote. “The expiration of the tax credit will create a cost-of-living crisis for millions of American families in 2026.”
They added that if the tax credit expires, a family of four makes $64,000 and their health insurance premiums will increase by $2,600. A 60-year-old couple who make $80,000 faces an increase in premiums of $17,500.
“This is an urgent issue that affects both the cost of living and patient health, and requires immediate action. Public admissions for coverage for next year begins between November 1 and 100 days,” the alliance said. “By October, millions of Americans will be 'window shopping' and see the full range of these 2026 premiums soaring. And, of the 24 million people registered in various markets, many are receiving letters informing them that they need to find hundreds or thousands of dollars in their already stretched family budget.”
They added that the crisis was “avoidable” and urged Congress to enhance tax credits in “the next bill sent to the president by Congress to sign its signature.”
The letter comes after the latest analysis released by KFF and Peterson Healthcare Centers that found that ACA Markets insurers are proposing the largest premium hike since 2018, with a median increase of 15% in forecasts in 2026. This is driven in part by the maturity of enhanced premium tax credits, as well as enhanced taxes on drugs and medical devices, as well as analysis of drugs and medical devices.
Photo: Yinyang, Getty Images
