5 facts about the health care tax credit

The health care tax credit has made it possible for millions to purchase affordable coverage on the individual marketplace, but it’s set to expire at the end of 2025. For families across the country, this will cause premiums to spike, putting coverage out of reach. Here’s what you need to know.

1. It helps cover millions.

More than 23 million people are enrolled in marketplace coverage—and 21 million rely on the premium tax credit to afford it.ⁱ

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2. Premiums are set to soar.

If the enhanced tax credit expires, monthly premiums will increase by an average of 93% starting in January 2026.ⁱⁱ

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3. Working families will be hit hard.

If Congress doesn’t extend the tax credit, a family of four making $64,000 a year could see their health insurance premiums increase by $2,600.ⁱⁱⁱ

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4. Millions could lose coverage.

Without the health care tax credit, 5 million people are projected to lose health insurance. This includes 1 in 4 enrollees living with chronic conditions.^iv,v

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5. The deadline is approaching.

Time is running out: Congress must act before Dec. 31, 2025, to prevent the tax credit from expiring and putting coverage out of reach for millions. Marketplace enrollees will see their 2026 increased premiums as early as October.

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