ICYMI: REPORT SHEDS ADDITIONAL LIGHT ON CONSEQUENCES FOR MILLIONS IF CONGRESS FAILS TO EXTEND THE HEALTH CARE TAX CREDITS

The following information was released by America's Health Insurance Plans (AHIP):

A new Washington Post analysis shows that health care tax credits have helped millions of lower- and middle-income Americansfreelancers, small business owners, gig workers and early retireesaccess affordable health care coverage they would not otherwise be able to obtain. The data shows "the typical person with an ACA plan is an adult in their mid-40s with an income between 100 and 200 percent of the federal poverty line, or about $21,000 to $42,000 for a family of two."

The Post also reported that in some states, an especially large percentage of the population benefits from the health care tax credits, including "twenty-four percent of Floridians under 65 [and] fourteen percent of Georgians," and the 10 states that have not expanded Medicaid eligibility will be especially hard hit as "many lower-income people without employer-sponsored health insurance could get health insurance only through ACA marketplaces."

Additional key excerpts from the Post's reporting include:

"If the credit expires, ACA marketplace customers at or near the poverty line would see their premiums jump from $0 to 4 percent of their income for a silver-level plan. A 50-year-old couple in Dallas who made 150 percent of the federal poverty level ($32,000 in 2025) would see their premiums increase to about $1,300 in 2026."

"Those with slightly higher incomes pay for part of their premiums already, but the amount would increase dramatically if the enhanced credits expire. For people who make 250 percent of the federal poverty level ($53,000 for a couple in 2025), costs would go from about 4 percent to 8 percent of their income."

"The increases would be most extreme for the more than 1 million marketplace customers making more than 400 percent of the poverty level (about $84,000 for a family of two). About a million people would go from paying 8 percent of their income on health insurance premiums to becoming responsible for the entire cost themselves. That would be especially painful because health insurance premiums [gross premiums] are expected to increase by 18 percent in 2026."

"Those who remain [in the individual market] will have to either shoulder higher costs or switch to a lower level of coverage. These increasing costs will probably come as a surprise to many people who benefit from the enhanced tax credit."

There is still time for lawmakers to protect 24 million Americans from the largest spike in health care costs in history and there is still time to ensure consumers see immediate relief in 2026. If the tax credits are extended, health insurers will work quickly with regulators and do everything they can to help consumers understand their updated coverage choices for 2026.

Go Deeper: Read the full Washington Post report here and get the facts on the health care tax credits that have made coverage affordable for 22 million Americans here.

###