A bipartisan effort in Congress has led to the passage of a bill extending Affordable Care Act tax credits for three years, aiming to alleviate rising health care costs for millions of Americans.
A Democrat-led initiative to extend Affordable Care Act (ACA) tax credits for three years has successfully advanced, following the support of 218 members of Congress—every House Democrat and four Republicans—who signed a discharge petition to force a floor vote. The legislation has now passed the House and is set to move to the Senate for further consideration.
As of January 1, the expiration of ACA tax credits, which had previously saved hardworking families thousands of dollars, has left nearly 22 million Americans—over 90 percent of Marketplace enrollees—facing increased health care premiums. This situation arose due to inaction by Congress, as highlighted by the Congressional Asian Pacific American Caucus (CAPAC). The expiration of these tax credits is seen as a consequence of cuts to health care support for working families, which were made to fund tax breaks for wealthier individuals.
The health care crisis resulting from this lapse is significant. Without the tax credits, enrollees are experiencing an average increase in annual health care costs of 114 percent, translating to an additional $1,106. Experts predict that approximately 15 million Americans may lose their health coverage in the coming years. Alarmingly, nearly six in ten Marketplace enrollees report that they could not manage even a $300 annual increase in health care costs without severely straining their household finances.
To illustrate the impact of these rising premiums, consider the following scenarios: A 60-year-old couple with an income of $85,000 would see their monthly Marketplace premiums surge from $602 to $2,647, resulting in an annual increase of about $24,500. Similarly, a family of four earning $130,000 would face premiums increasing from $921 to $1,992 per month, costing them an additional $12,900 each year.
For a family of four with an income of $66,000, monthly premiums would triple from $121 to $373, leading to an annual increase of approximately $3,025. A couple earning $44,000 would see their premiums rise from $85 to $253 per month, adding $2,013 annually. Lastly, a single individual earning $32,000 would experience a jump in monthly premiums from $58 to $180, resulting in an annual increase of $1,468.
Rep. Grace Meng (NY-06), Chair of the Congressional Asian Pacific American Caucus, criticized the previous administration’s handling of health care, stating, “President Trump and Republicans have created a health care crisis, forcing millions of hardworking Americans to pay double, triple, or even quadruple more for health care premiums as they allowed the Affordable Care Act (ACA) tax credits to expire.”
She emphasized the importance of the newly passed legislation, saying, “However, thanks to the efforts of House Democrats and a few Republicans, we have advanced legislation that would restore the ACA tax credits that help people afford health insurance, including the 1.5 million Asian Americans, Native Hawaiians, and Pacific Islanders who receive coverage through the ACA. The Senate must take up this bill immediately to reverse these outrageous premium hikes and deliver relief to working families across the country.”
The urgency of this legislation reflects the growing concern over health care affordability in the United States, particularly as millions face the prospect of losing coverage or experiencing crippling premium increases. The Senate’s prompt action on this bill will be crucial in determining the future of health care access for many Americans.
According to India Currents, the passage of this bill marks a significant step towards addressing the health care crisis exacerbated by the expiration of ACA tax credits.