WITH NEW YORKERS AT RISK FOR SKYROCKETING HEALTH CARE COSTS OR LOST POLICIES, GILLIBRAND CALLS FOR EXTENSION OF ENHANCED AFFORDABLE CARE ACT SUBSIDIES TO HELP AMERICANS AFFORD HEALTH INSURANCE

The following information was released by New York Senator Kirsten E. Gillibrand:

Without an extension, ACA enhanced tax credits will expire at the end of 2025

If these subsidies expire, New Yorkers will face an average yearly increase of $1,360 in the amount they pay for health insurance

With crucial health insurance subsidies set to expire, U.S. Senator Kirsten Gillibrand is demanding that Congress include an extension of enhanced Affordable Care Act premium tax credits (PTC) in any upcoming funding package. These tax credits bring down the cost of insurance premiums for low- and middle-income individuals and families, helping people in New York and across the country afford health care. Without an extension, ACA enhanced tax credits will expire at the end of 2025, causing nearly 20 million Americans to see a sudden increase in their health insurance costs. This includes at least 1.6 million New Yorkers, who will face an average yearly increase of $1,360 in the amount they pay for their premiums.

"In the richest country in the world, no one should have to forgo treatment because they can't afford health insurance," said Senator Gillibrand. "Allowing these critical tax credits to expire would create a financial burden that many New Yorkers simply cannot afford, forcing hard-working families to choose between potentially life-saving care and putting food on the table. That is absolutely unacceptable, and it's why I'm calling on my colleagues in Congress to include an extension of the ACA enhanced premium tax credits in any funding bill that passes this fall. These subsidies save lives, and I'm determined to keep them in place."

Premium tax credits (PTC) were established as part of the ACA, which became law in 2010. PTCs are refundable credits that help low- and middle-income individuals and families cover the premiums for their health insurance purchased through the Health Insurance Marketplace.

In 2021, the American Rescue Plan Act (ARPA) temporarily expanded eligibility for PTCs and lowered premiums for those who were already eligible. In 2022, the Inflation Reduction Act extended these enhanced credits for three years. Since ARPA's passage, ACA enrollment has nearly doubled, helping more low- and middle-income households receive coverage and care. While the amount of savings varies by person, these enhanced PTCs have reduced premium costs by 44 percent on average. If Congress does not act to again extend the enhanced PTCs, the provision will expire at the end of 2025, and nearly 20 million Americans will see a sudden increase in their health insurance costs.