The benefit of advanced premium tax credits
Today, 13 million people depend on tax credits to afford health insurance through the Affordable Care Act (ACA) marketplace. Another 88 million are covered by Medicaid – an increase of 24% since the start of the pandemic.
By 2023, however, many of these people are at risk of losing the affordable coverage they and their families rely on.
That’s because the COVID-19 public health declaration preventing Medicaid disenrollment is nearing an end at the same time that enhanced ACA tax credits are expiring. Should this happen, the average household that depends on these credits today would see their share of premiums double—effectively pricing millions out of health insurance. Conservative estimates place this number at 5.1 million newly uninsured Americans, while broader estimates anticipate up to 14.2 million could lose Medicaid coverage.
For example, without congressional intervention, a family of four with a combined income of $65,500 annually (below the 250% Federal Poverty Level) would see their coverage increase from $218 to $455 in 2023.
The benefit of ACA tax credits
Analysis shows how extending ACA tax credits would impact millions across the country:
- 7.4 million additional people covered under the ACA marketplace
- 5.6 million fewer uninsured Americans
- $55 per month lower average premiums for individuals enrolled in the ACA marketplace
Families shouldn’t have to risk peace of mind and financial security. To ensure millions of households don’t lose the coverage they count on, Blue Cross and Blue Shield companies are urging Congress to finish the fight and extend ACA tax credits, helping make health care more affordable for the long run.