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Tax credits are ending and now millions of Americans will face an extra $2,000 in charges per year

More than three million Americans could end up without healthcare coverage.

healthcare

This is a likely reality if Congress doesn’t extend enhanced subsidies for the Affordable Care Act (ACA).


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ACA coverage

The Biden Administration strengthened the Affordable Care Act through the American Rescue Plan. The plan offered subsidies on ACA coverage, which reduced costs by nearly 40% for people with government-sponsored insurance. The additional credits allowed 14.5 million people to enroll just this year.

Action needs to be taken soon, as the tax credits are set to expire January 1, 2023. If no action is taken, 3,1 million Americans will lose coverage and see premiums rise drastically.

The average premium is $1,332 and would increase to $2,040– a 53% increase. Research shows that Florida will be one of the top states impacted by this.

The ACA is intended to provide affordable health insurance through subsidies or tax credits to lower-income households.

If congress doesn’t act soon millions of Americans will be forced to pay higher premiums– more than $12 billion nationwide. The decision to enact a last minute extension could also generate enrollment issues.


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