Sticker shock if Congress lets tax credit expire
The nation’s affordability crisis could get significantly worse for millions of Americans and their families who purchase health insurance through the individual marketplace.
The health care tax credit that helps working families afford coverage is set to expire at the end of this year. If it does, starting in January 2026, on average premiums will increase by 93%. For a typical family of four that earns $64,000 a year, they will pay $2,600 more. And that isn’t the only consequence.
Impacts of health care tax credit expiration
Ending the tax credit poses economic risks on a local and national level.
- 5 million Americans will lose coverage, including 1 in 4 enrollees with chronic conditions
- People in rural areas would be hit hard as health care services are already difficult to reach
Over 23 million Americans have coverage through the marketplace, with 21 million taking advantage of the tax credits, saving families an average of $6,596 per year.
Congress can protect all of this by extending the health care tax credit this year.
$1 trillion in savings without raising costs on families
Blue Cross and Blue Shield companies are laser-focused on increasing access to high-quality, affordable health care for Americans. There are better ways to deliver health care savings for hardworking taxpayers, like reining in out-of-control prescription drug prices and ending hospital mark-ups that drive up premiums.
It is all a part of the roadmap to reduce costs by nearly $1 trillion over 10 years. BCBSA released it in 2025 to advance commonsense solutions to make care more affordable.
We stand ready to work with Congress and the Administration to advance those solutions and to protect the health care tax credit. Together, we can make health care more affordable.
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